Economy
Sun, Sep 26, 2004
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SEC Studies Constitutional Ban On Privatization
Monorail Can Help Ease Traffic Problems
Petrochem Production to Reach 15m Tons
State Firms May Withdraw From ICCIM
OPEC Output Hike Unhelpful
Investment Climate Positive
Second-Hand Car Import Denied
Management Revolution Welcome
TurkCell, TUV Wary of Majlis Bill
Azadegan Project Not Linked To Nuclear Program
High-Tech Tools for Agro Statistics

SEC Studies Constitutional Ban On Privatization
TEHRAN, Sept. 25--The State Expediency Council (SEC) on Saturday examined the general policies of the Islamic Republic of Iran regarding Article 44 of the Constitution, which bans privatization of major industries.
According to ISNA, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei has directed the SEC to formulate the Islamic establishment's general policies on the important constitutional article.
Economic ministers and their deputies as well as some parliamentarians and most SEC members attended the meeting, at the end of which it was stipulated that by the end of fourth development plan (2005-2010), the government must withdraw from economic activities which can be undertaken by the cooperatives and private sectors.
Private companies must not be prohibited from undertaking such activities by Article 44 of the Constitution.
The latest SEC ratification would mean a 20-percent decline in the state control over the national economy. It excludes all military and security activities of the government.
The government will be responsible for deciding which economic activity can be ceded to the private sector and which should remain under state control as per Article 44 of the Constitution.
Members of the arbitrating body further stressed the need to follow up issues related to the restoration of Iran's right to nuclear technology.
The SEC is still studying the long-sought amendment to Article 44 of the Constitution.
The SEC Economic Commission has proposed transferring 65 percent shares of major industries to private ownership. The council has not yet endorsed the proposal.
Once the SEC notifies its final decision on lifting the constitutional ban on privatization to the Ministry of Industries and Mines, major industries will be able to offer their shares on the stock market.
A member of the State Expediency Council said earlier the 'council will not make any changes to Article 44 of the Constitution'.
Mohammad Javad Iravani told ISNA that any change in the Constitution would require a nationwide referendum.

Monorail Can Help Ease Traffic Problems
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Mahmoud Ahmadinejad
TEHRAN, Sept. 25--Tehran Mayor Mahmoud Ahmadinejad said the monorail system Tehran Municipality is planning to construct in the populous metropolis will help reduce traffic jams, stressing that motorists would be unable to move easily in the capital city in the next five years unless modern transportation means are employed.
According to the Persian daily Javan, the mayor further told reporters on the sidelines of his meeting with Tehran District 10 Municipality officials that the 90-kilometer Tehran monorail will operate on five main routes.
He stressed that the metropolis needs 400 kilometers of monorail, adding that the system is one of the most modern transportation means.
Ahmadinejad said earlier this month that Tehran Municipality will continue to implement the project to construct monorail transport system in the capital city, rejecting strong opposition from experts.
"This is a legal project," the mayor said. "We will not engage in political and press games and will continue to implement this modern project in cooperation with the private sector."
Ahmadinejad's insistence comes amid increasing concerns by some urban experts the monorail system will only add to the city's already nerve-racking noise pollution.
Experts contend that monorail cannot help ease traffic-related problems.

Petrochem Production to Reach 15m Tons
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With the completion of all the Third Plan petrochemical projects, national petrochemical
production capacity will increase by five million tons to reach 15 million tons per annum.
TEHRAN, Sept. 25--Iran's petrochemical production capacity will reach 15 million tons by March 2006, a senior petrochemical industry official said Saturday, adding that German, Swedish and Azeri firms have invested in several petrochemical projects. According to ILNA, Hassan Sadat, National Iranian Petrochemical Industries Company's project manager, told reporters that foreign investors are keen on undertaking more projects, stressing that foreign investment applications are currently being studied.
He further noted that most of the Third Five-Year Development Plan (2000-2005)'s petrochemical projects will become operational by March 2006.
"Tondgouyan, Amir Kabir and Olefin projects will be completed next year," he said, pointing out that the Third Aromatic (Avicenna) project will also be implemented by mid-2005.
The official said with the completion of all the Third Plan petrochemical projects, national petrochemical production capacity will increase by five million tons to reach 15 million tons per annum.
President Mohammad Khatami inaugurated a major petrochemical complex in the western city of Mahabad, West Azarbaijan, last week.
Mahabad Petrochemical Complex has an annual production capacity of 300,000 tons of polyethylene. The project is aimed chiefly at creating jobs and upgrading technologies in the oil, gas and petrochemical industries and activating downstream petrochemical industries in various regions.
A 1,500-km ethylene pipeline extends to Mahabad from Pars Special Economic Energy Zone in the hydrocarbon resource-rich Asalouyeh region. The pipeline will transfer 5.1 million tons of ethylene to and from Asalouyeh located on the Persian Gulf.

State Firms May Withdraw From ICCIM
TEHRAN, Sept. 25--Tehran Chamber of Commerce chairman here Saturday welcomed the proposal to disallow state companies to operate within Iran's Chamber of Commerce, Industries and Mines (ICCIM) provided that the move does not make any discrimination.
Mohammad Reza Behzadian told Mehr news agency that Tehran Chamber of Commerce, Industries and Mines also supports free and fair poll to this effect. "If state companies are to withdraw, then all of the state officials who work in the ICCIM must also go," he said, adding that the chambers of commerce belong to all sections of economy and not particular companies. "It does not seem logical that giant firms such as Iran Khodro Auto Manufacturing Group and Iran Milk Industries Company pull out from and small private firms join the chamber," he said, stressing, however, that the Tehran chamber would not be against the initiative if all state managers leave ICCIM, without exception.

OPEC Output Hike Unhelpful
Investment Climate Positive
TEHRAN, Sept. 25--A senior Oil Ministry official said here Saturday that the Organization of Petroleum Exporting Countries' (OPEC) decision to raise output by one million barrels per day (bpd) will not have an impact on fluctuations in crude oil prices.
Saeed Serajmir, deputy oil minister for OPEC affairs, told ILNA that prices will continue to rise should the situation remain critical in Iraq. "If the Iraqi crisis remains unresolved, oil prices will experience further highs," he said, stressing, however, that prices are unlikely to hit the $50 per barrel in the short-run.
The official said Iran has the ability to increase its oil output, adding that high oil prices have prepared suitable ground for energy investments in the hydrocarbon resource-rich country.
He added that prices will not go below $22 a barrel.
He expressed hope that regional crises would be resolved and the international oil market become stable.
Crude oil prices approached $49 a barrel Friday, capping a rise of seven percent for the week, as Gulf of Mexico crude production rebounded at a slower-than-expected rate after Hurricane Ivan.
Light crude for November delivery rose 42 cents to settle at a new high of $48.88 per barrel.
While the price of oil has been high throughout the year, the march toward $50 a barrel did not begin in earnest until late summer, due to the combined effects of oil-pipeline sabotage in Iraq and fears of reduced output in Russia, where oil giant Yukos has become cash strapped as it repays the government $3.4 billion in arrear taxes. The price of oil is up 73 percent from a year ago in the New York Mercantile Exchange.

Second-Hand Car Import Denied
Management Revolution Welcome
TEHRAN, Sept. 25--Minister of Industries and Mines Es'haq Jahangiri here on Saturday rejected reports that the government has authorized the import of second-hand vehicles and lambasted the media for fanning rumors which he said create expectations among the public.
"While no decision has been taken on importing second-hand cars, the press created such anticipations among the Iranians," Jahangiri told ISNA.
The minister said that the only decision which was made recently by the government on this issue was that Iranian expatriates can bring in their personal effects which includes used cars.
Terming remarks about the import of second-hand cars as ludicrous, Jahangiri said that the country, which produces over one million vehicles annually, cannot permit the import of second-hand cars without ruining the national automotive industry.
Meanwhile, Jahangiri here on Saturday welcomed recent proposal by Iran's Chamber of Commerce, Industries and Mines (ICCIM), to initiate changes in its top brass.
Calling the scheme a 'management revolution', Jahangiri said that the move would have a positive impact on the chambers activities.
He further noted that despite the great importance given to the private sector in the fourth five-year development plan (2005-2010) and the 20-Year Perspective for Economic and Social Development, the country lacks a dynamic private sector. "The chamber can play an important role in strengthening the private sector," he stated.
Jahangiri, who was speaking on the sidelines of a meeting at Mines House, expressed hope that the initiative would help the process of development in the country.

TurkCell, TUV Wary of Majlis Bill
ANKARA, Turkey,
Sept. 25--Iranian Majlis bill obliging the government to obtain parliamentary authorization prior to signing a contract with foreign firms was received with caution by TurkCell and TUV firms, IRNA reported.
While TUV expressed concern over the bill, TurkCell announced after paying 300 million euros to Iran for the issuance of the required license it will work as a second operator of Iran's mobile phone. TurkCell announcement comes after Istanbul Stock Exchange asked for explanation of the firm concerning the news about starting the company's activity in Tehran.
In the announcement, TurkCell said although the contract has been signed between the firm and Iran's government, to become effective it should pay 300 million euros to Iran.
A senior official of the TUV expressed concern over Iran's Majlis recent bill but said the company has to wait and see what happens.
Thani Schener added the recent development in Iran is beyond the interests of a single company in Turkey and all European companies' investments in Iran would be jeopardized.
He noted if the company faces difficulties on its way to operate in Iran, it would reserve its rights for compensation from Iran's government.
The TUV firm is to render services at Tehran's Imam Khomeini International Airport while TurkCell is to work in the field of telecommunications and would work as a second operator of Iran's mobile phone.

Azadegan Project Not Linked To Nuclear Program
TOKYO, Sept. 25--A top Industry Ministry official here on Wednesday avoided linking Iran's nuclear program and Japan's oilfield development in the country, saying the issues should be addressed from two different perspectives.
The oil development project in Azadegan, southern Iran, is important in light of Japan's need for independent development of oil since it lacks oil resources, Vice Economy, Trade and Industry Minister Hideji Sugiyama told a news conference.
Sugiyama made the remarks when asked about the repercussions of a recent resolution by the International Atomic Energy Agency against Iran over its nuclear development plans.
"We need to address the issues based on recognition of both points" of stable oil supply in Japan and Iran's nuclear problem, Sugiyama said. At the same time, Sugiyama said Japan shares international concern about Iran's nuclear ambition, adding Tokyo will keep pushing Tehran to implement the demands of the UN nuclear watchdog. "In order to resolve Iran's nuclear problem promptly, it is important for Iran to accept the resolution seriously and respond in a sincere manner."
Japan and Iran signed an agreement in February on an oil development project in Azadegan, one of the world's largest oil fields.
The United States has urged Japan to reconsider its policy of pursuing the Azadegan oil development project, citing Iran's nuclear development program.

High-Tech Tools for Agro Statistics
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NEW DELHI, India, Sept. 25--Iran and countries from the Asia-Pacific region will cooperate in the use of modern techniques, including remote sensing, for gathering and processing agricultural data.
According to IRNA, the five-day 20th session of the Asia-Pacific Commission on Agricultural Statistics (APCAS), which ended here Friday, deliberated on the coordinated use of available tools in the region. Precise data are invaluable inputs for informal economic decisions.
Some 200 delegates from 18 countries took part in the session. The Iranian delegation included Gholamali Kheri, assistant director general, Department of Agricultural Statistics, Statistical Center of Iran (SCI), and Ali Reza Hatamisadabad, deputy director general, Bureau of Statistics and Information Technology, Ministry of Agriculture Jihad.
The conference was inaugurated by Indian Minister of State for Agriculture Kantilal Bhuria on Monday and was addressed by Indian Agricultural Secretary Radha Singh.
Fredrick Baker, APCAS secretary, Daniel Gustafson, FAO representative for India and Bhutan, Hick Som of the Chief Statistical Development Office (FAOHQ) and Huh Yoon Jin, director general, Ministry of Agriculture and Forestry, Government of Korea and outgoing chairperson of APCAS also addressed the inaugural session.
The conference covered the entire gamut of food and agricultural statistics including crop production, livestock, forestry and fishing in member countries.
The agenda also included application of remote sensing in the forecast of crop area and production, forestry and fisheries, use of trade flow data in agriculture policy formulation, development of country STAT as a vehicle for organizing national agriculture sector data, strengthening regional data exchange system in food and agricultural statistics, analysis of agricultural census and surveys, including livestock census data and a plan for forthcoming world census of agriculture in 2010.
At the five-day session also heard presentations by delegates from Iran and other member countries. FAO representatives actively participated in the discussions.
The Asia-Pacific region accounts for 73 percent of the world's agricultural population.
The APCAS, which was established by FAO at its 12th session in 1963 on the recommendation of the 6th FAO regional conference for Asia and the Far East (1962), holds its session every two years. The last session was in Seoul while the next session (21st) will be in Bangkok.