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The Dez Multipurpose River Project is the first step of a development program for the Khuzistan area. The project is to be followed in the future by other dams in the upper reaches of Dez and Karun rivers. Khuzistan is an area Southwest of Iran, bordered by Iraq to the west and the Persian Gulf to the south, where oilfields and the oil refinery of Abadan are located. Most of it is bare mountains and desert. Around Ankimeshk, Dezful, Shushtar and Ahwaz there is, however, some dry-agriculture and irrigation farming using water from the Karun and Dez rivers. The Dez River Project will provide water for irrigation, electric power to Ahwaz, Abadan, Khorramshar, Dezful and Andimeshk, it will reduce the peak of floods of the Dez river, and thereby flood damage which periodically occurs in this area. The project consist of: 1) Construction of a thin concrete arch dam creating a reservoir, and a powerhouse; 2) Construction of a transmission line from Abadan to Ahwaz; 3) Rehabilitation and expansion of the electric distribution systems of five towns; 4) Rehabilitation and expansion of the electric distribution systems at Ahwaz, Abadan, Khorramshar and other towns; and 5) Rehabilitation of a sugar cane refinery at Shu. The project will contribute to the economic development of the Khuzistna area, Southwest of Iran.