Iran to borrow $ 2 bn to complete projects

Dec 07, 2002 01:00 AM

Head of Management and Plan Organization (MPO) Mohammad Sattarifar said that Iran will borrow $ 2 bn to complete the numerous unfinished and semi-completed projects. Of the sum, which has been authorized by government directive, $ 1.5 bn will be raised from selling hard currency bonds in the European bond markets, he remarked.
He said of the sum, over $ 650 mm has already been borrowed with the remaining amount ($ 900 mm) slated to be borrowed by the end of the Iranian month of Azar (ends December 21.) The rest will be handled by the nation's banking system and branches of Iranian banks abroad. He said he does not see any snags in raising the amount.
The head of MPO said the next year's budget will see a 50 % growth in the development budget, "hopefully with adequate financing the semi-completed projects will be completed."

Concurrently the bond tender, other complementary domestic and foreign financing, and the build, operate and transfer (BOT) schemes will be initiated to cover the cost of such development projects as a 500 MW power plant, as well as additional projects in oil, industry, water, natural resources and environment will be completed.
He said that a more serious outlook has been urged on the manner of viewing projects with the aim of finishing them as soon as possible. Meanwhile, First Vice-President Mohammadreza Aref said in November that the problem with development projects is the long-term required to complete them.

He told that the average period for implementing development projects is nine years, "which is unacceptable." The vice-president added that in previous years, officials reached the conclusion that the initiation of development projects were beyond the nations' capacity. Based on the Third Five-Year Development Plan (March 2000-March 2005), the semi finished projects have been prioritised, he said, adding, "So that those projects which are not in priority will be left untouched."
He further pointed out, "Also, during the development plan, work will proceed only on those projects that can be financed." The shortening of the duration of implementing the projects will lead to lower costs and increased efficiency, the vice-president noted.

Source: The Tehran Times
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