South Korea's Hyundai Engineering Company (HEC) will sign a contract to establish a 500-megawatt (MW) power plant in Iran, said a report.

A panel of executives and experts from Hyundai's energy sector are in Iran on the threshold of South Korean president's visit, added the Iran Daily News report, citing Mehr News Agency reported.

The South Korean delegation travelled to the north-western city of Zanjan to assess facilities and infrastructure required for the construction of the power plant, high-voltage power transmission lines as well as a gas injection station, it said.

Based on an agreement reached between a subsidiary of Iran Power Generation and Transmission Company (Tavanir) and Hyundai Engineering Company of South Korea, a 500 MW power station will be constructed 25 km from Zanjan on an area of 42 hectares within the framework of a build-own-operate (BOO) contract, added the report.