ANKARA, Nov 20: Turkey on Tuesday signed an agreement with neighbouring Iran for joint power production projects despite US pressure against investment in the Islamic republic.

Energy Minister Hilmi Guler played down US discontent with flourishing energy cooperation between its NATO ally Turkey and Iran, saying more agreements would be concluded in the coming days.

“The signing of agreements will continue. Our efforts are continuing,” Guler told a joint news conference with his Iranian counterpart Parviz Fattah after the two signed the power production deal.

Fattah also hailed the improvement of Turkish-Iranian economic cooperation.

“Our improving ties may annoy some circles but they will harm no one,” he said through an interpreter. “They have to accept that.” The United States has urged its allies, including Turkey, to cut business with Iran and is pushing for tougher UN sanctions against the Islamic republic over its alleged efforts to develop nuclear weapons.

Tehran argues that its nuclear energy programme is totally peaceful.

Tuesday’s agreement foresees the joint construction of three thermal power plants -- two in Iran and one in Turkey -- with a capacity of 2,000 megawatts each, as well as several hydroelectric plants in Iran with a total capacity of 10,000 megawatts, the Anatolia news agency reported.

Under the deal, transmission lines between Iran and Turkey will be upgraded and expanded within a year.

“After we enhance the lines, both countries will take as much power as they need,” Guler said.—AFP