Iran has reached an agreement with Germany’s Siemens to set up a major new power plant in northern Tehran, said a report.

The deal will be signed soon, and Siemens will finance the Jalal power plant, Andoukhteh Shahed Institute board member Mohammadreza Ayatollahi was quoted as saying in an Iran Daily News report.

He further noted that an estimated €330 million ($375.9 million) to €350 million ($398.7 million) will be required to build the first phase of the power plant.