The Foreign Ministry says in a statement that the new apartments should house about 45,000 people.

President Hugo Chavez has developed close ties to Tehran, and an Iranian company previously helped build public housing complexes in Venezuela.

Chavez’s government is also turning to companies from China and other countries to help build homes as Venezuela confronts a severe housing shortage.

Housing Minister Ricardo Molina announced the agreement with Iran on Wednesday and said the homes will be built in the states of Yaracuy, Lara and Carabobo.