Mahmoud Mohaddes

Exploration manager of the National Iranian Oil Company (NIOC) Monday said the deadline for purchasing tender documents for 17 oil blocks expired on July 22 and 24 domestic and foreign companies bought 89 information packages.
Speaking to PIN, Mahmoud Mohaddes added the bidders should submit technical and financial proposals to the NIOC’s Exploration Department no later than August 1, expressing hope the proposals would be presented on time.
He voiced satisfaction over the enthusiasm of foreign and domestic companies in buying information packages.
Mohaddes said political issues did not have considerable impact on the participation of foreign companies in the 17 exploration blocks tender as they were unwilling to miss alluring trade in Iran.
The official termed Iran’s high potentials for economic activities and lucrative deals as important factors motivating the companies to invest in the country.
The official noted, “Compared to the Persian Gulf littoral countries as well as South African and Latin American states, our country and the neighboring state of Iraq have a greater chance for exploring huge fields.
“Still, exploration operations are subject to long-term 15- to 20-year contracts. So, the two advantages prompt foreign companies not to miss them.“
He said the purchasers of tender documents were top and reliable oil companies, adding Asian, European, Canadian, and some domestic companies had bought the documents for the tender.
“In general, there is high risk in exploration contracts,“ said Mohaddes, adding 40 to 50 million euros should be invested in each exploration block and domestic companies can hardly afford it. He added, “To attract foreign contractors to tender bids of the 17 blocks, Iran is considering incentives such as increasing the period of oil production from the fields from 15 to 20 years as well as reducing the sum of letters of guarantee from $300,000 to about 150,000 euros ($200,000).“
Meanwhile, Hossein Roshandel, deputy director of exploration blocks and foreign partnerships at the NIOC said, “Despite current political conditions and speculations about the lack of willingness of foreign companies to take part in Iran’s oil industry projects, their enthusiasm in the upcoming tender bids has remained unchanged.“

The cabinet has approved the transfer of shares of National Iranian Copper Company, Mobarakeh Steel Company and Iran Aluminum Company to the private sector.
The government has authorized the sale of some 40 percent of the stocks of these firms at Iran’s stock exchanges or international bourses.
Presidential office’s website reported that the cabinet also, in its late Sunday meeting, approved the transfer of five percent of shares of Dana, Alborz, Asia insurance companies as well as Tejarat, Saderat, Mellat and Post banks through the stock exchange to private investors, IRIBnews said.
Meanwhile, head of Privatization Organization announced that five percent of the shares of four state banks, Post Bank and three insurance companies will be floated in the stock exchange on a trial basis.
Gholamreza Heidari Kord-Zangeneh predicted that the shares of these entities will be offered at the stock exchange within the next two months.
Referring to one of the paragraphs of Article 44 of the Constitution, the official said stock exchange is responsible for setting the price and sale of shares of state-owned banks.
Kord-Zanganeh, also a deputy minister of economic affairs and finance, said a limited share of state banks and companies will be transferred to real and legal entities through the stock exchange.
Articles of association of the banks have been amended to pave the way for the transfer of their shares to the public, he noted.
Stressing that the private sector accounts for less than 20 percent of national banking system, he noted that the government plans to reform the system to make banks’ activities transparent.
He cited Article 44 of the Constitution based on which some 80 percent of state-owned economic institutions have to be transferred to the private sector by 2014.
Article 44 of the Constitution seeks large-scale privatization in key economic areas which were off limit the private enterprises for about three decades.

Municipal and industrial wastes released into the Caspian Sea account for 70 percent of the pollution.

Numerous requests for construction of hotels and islands on the Caspian coast have been submitted to the Department of Environment (DoE), top environmental body’s director general for marine environment announced.
Mohammad Baqer Nabavi told Mehr on Sunday that the department should take environmental concerns into account while in construction permits for structures on the Caspian coastline. “Otherwise they can pose serious threat to the world’s largest inland body of water,“ he warned.
So far, dozens of applications to build hotels along the Caspian coastlines have been made, he added. The department will approve of projects which observe marine environment principles and do not lead to receding coastlines. “Construction is conditional upon not hindering the flow of water.“
Nabavi underlined that DoE will conduct thorough studies before issuing permits.
He stressed that at present, Caspian Sea is threatened with pollution and construction of island which may lead to the annihilation of marine creatures and aggravate pollution.
Since this summer, the department has warned against the adverse environmental impacts of installations and buildings along the Caspian Sea.
It has called for clearing the Caspian beaches of these structures since they cause serious pollution of the sea.
Conservationists and environmental experts have for long warned against mounting pollution in the Caspian.
They name anthropogenic onshore activities as the main sources of pollution.
Municipal and industrial wastes released into the Caspian Sea account for 70 percent of the pollution.
Oil, pesticides, as well as toxic metals including heavy metals discharged by coastal agricultural and industrial units into the world’s largest lake pose the most serious hazards to health and the ecosystem.

Head Technical and Vocational Education Center has pledged that the entity will offer skills training program to 3.3 million people during the year to March 2008.
Speaking to the Persian daily ’Iran’ in the run-up to National Skills Day on July 28, Ali Kordan noted that over 1.65 million individuals receive training each year.
He put the number of the centers imparting technical and vocational training courses at 670 permanent, 1,000 mobile and 12,000 private educational institutions.
This is while the organization has also set up 50 centers in countries such as Afghanistan, Armenia, Bahrain, Iraq, Kuwait, Tajikistan and the United Arab Emirates. These centers are jointly established by Iran and the host countries to train foreign and Iranian applicants.
The official pointed out that 3.5 million people will receive skills training in the context of three groups.
According to him, different groups of the society such as detainees, soldiers, workers in industrial units and factories and housewives are to undergo training.
“Therefore, it should be noted that only one million out of 3.5 million people actually enter the job market.“
Kordan noted that between 50 and 70 percent of this group will be absorbed in the job market, adding that all those who undergo training in professions such as accounting, building installations and electronics eventually find jobs.
One of the challenges facing technical/vocational centers is that they are yet to acquire modern technology, he noted. “While majority of the centers worldwide are engaged in training modern technologies to applicants, our institutes continue their job as before.“
For instance, the official stated, nanotechnology is a training course in majority of countries but Iran is still stranger with it.
The World Bank has recently pledged to cooperate with Iran in establishing a national skills center. Fund needed for establishing the center is estimated at over $200 million. It is to be financed by WB.

Chinese state machinery maker Norinco has signed a major contract to supply subway trains to Iran, but warned that international tensions over the country’s nuclear program could derail the deal.
Norinco International Cooperation Co. agreed to supply subway trains and parts worth 424.5 million euros ($587 million) for use in Tehran, the company said in a statement.
The equipment will be sold to TWM, a joint venture between Iranian railway and industrial firms and Chinese interests, Reuters said.
However, Norinco warned that the international dispute over Iran’s nuclear program and United Nations economic sanctions against Iran, meant there was ’considerable uncertainty’ over whether the deal could go ahead. It did not elaborate.

Islamic Development Bank (IDB) is to grant a 23.65 million euro loan to Iran for a dam construction project in Khorasan Razavi province.
IDB approved the loan for construction of Bar Dam in the northeastern Khorasan Razavi province on July 8, Fars reported on Monday.
Construction of the dam is estimated to take four years.
The loan is to be reimbursed in 22 installments during 11 years with the annual interest rate of 5.1 percent.

Some 2,000 flower growers and producers as well as 15 provincial cooperatives have contributed to the project.

Middle East’s largest terminal for exports of flower is set to open in Tehran next month.
The terminal will be one of four of its kind to be launched with private investment and the support of Trade Development Organization. The terminals aim to develop export, reduce waste and keep flowers fresh by installing cold storage systems.
They can also serve as venues for sale and supply of flowers and plant materials to the domestic market, the Persian daily ’Iran’ reported on Monday.
Commenting on this, the organization’s director general for developing goods exports, Mehrdad Jalalipour stated that the proposal to establish such terminals came to the fore in 2002.
The terminal in Tehran will be the main one, while the other three are to be set up in Mahallat (Markazi province), Dezful (Khuzestan province) and Tonkabon (Mazandaran province), he elaborated.
Jalaipour put the cost of these terminals at 500 billion rials, adding that the government has pledged financial assistance for the projects commensurate with the progress in construction.
The official noted that foreign investors have also invested in the construction of terminals.
Iran has high potentials in the horticultural sector given its diverse climatic conditions. At present, 4,700 hectares are under ornamental flowers and plant cultivation. The country exports over one billion cut flowers per annum.
Experts believe that the main drawback is the traditional production and supply methods which impede the development of the horticultural sector since 50 percent of the cut flowers are wasted during transportation.
Jalaipour underlined that one of the main objectives of the terminals is to cut down on wastage. He hoped that the rate of wastage can be brought down to 10 percent once the terminals become operational.
According to the official, cold storage facilities of the terminals are so advanced that can keep cut flowers fresh for one week or more.
Jalalipour expressed satisfaction with physical progress of Tehran and Mahallat terminals. Mahallat terminal will come on stream by September.
Meanwhile, executer of the project in Tehran, Jalal Ajayebi said that some 100 billion rials have been spent on the terminal so far.
Some 2,000 flower growers and producers as well as 15 provincial cooperatives have contributed to the project, he noted.
Ajayebi stated that phase one of terminal will be launched soon and the terminal will become fully operational within one year.

Belarusian Foreign Minister Sergei Martynov has said Iran and Belarus strive to implement agreements previously signed by their presidents.
At a recent meeting between Martynov and his Iranian counterpart Manouchehr Mottaki, the two sides reviewed efforts made to put the agreements into effect, according to ISNA.
Iranian President Mahmoud Ahmadinejad paid a visit to Minsk in May.
Ahmadinejad and his Belarusian counterpart Alexander Lukashenko have agreed to bolster bilateral cooperation in the fields of trade, economy and banking.

Algerian Trade Minister Hachemi Djaaboub and Iranian Ambassador to Algeria Hossein Abdi-Abyaneh in a meeting on Sunday called for further development of cooperation as well as expansion of trade ties, PressTV wrote.
The Algerian minister said his country is willing to upgrade relations with Iran and called for expanding trade and investment.
The Iranian ambassador, for his part, voiced his country’s readiness to promote business cooperation with Algeria. The envoy said Iran can supply high quality goods at reasonable price to the Algerian market.
Abdi-Abyaneh hoped the two sides would sign several trade agreements in the near future.