Given the massive liquidity growth, people's savings could be channeled to investment in stock market.

TEHRAN, Oct. 31--Tehran Stock Exchange (TSE) secretary general here on Sunday denied speculations that some investment companies have--in a concerted effort to bring down prices--refused to purchase shares offered by the Privatization Organization in the past weeks.
Hossein Abdeh-Tabrizi told Mehr news agency that the Privatization Organization had apparently not paid attention to the decline in deals in the wake of international controversies over Iran's peaceful nuclear program.
"Stock market indices have been in bad shape," he said, adding, however, that transfer of major state companies' shares to private ownership is time-consuming.
He said 'shares offered by Privatization Organization will be sold over time and that the national capital market would be able to tackle the present problems' resulting from a relative recession, which has discouraged many investors from trading at TSE.
The official noted that given the massive liquidity growth, people's savings could be channeled to investment in stock market.
A parliamentarian last week criticized what he described as 'poor coordination' between the Privatization Organization and Tehran Stock Exchange in ceding shares of major state companies.
Iraj Nadimi, a member of the Majlis Economic Commission, told Fars news agency that the shares are being offered at a time when the stock market is experiencing a decline in deals due to the US presidential elections and controversies over Iran's peaceful nuclear program.
He further said that shares of state companies must be transferred to private ownership gradually to let Privatization Organization and TSE establish greater coordination.
Some 60 percent of the annual budget is spent on funding loss-making state companies, whereas transferring shares of state firms to private ownership would impose no additional financial burden on the government.
Five trillion rials worth of shares of 12 major state companies have been offered in the past weeks--a move welcomed by many economic experts as a great step forward in efforts to improve privatization goals.
Notwithstanding that only one of the 12 companies has so far managed to transfer all its shares to private ownership, Privatization Organization officials believe that the rest of the shares will certainly be ceded by March, when the second phase of the wholesale privatization project will begin.

TEHRAN, Oct. 1-A senior Management and Planning Organization (MPO) official said here on Sunday that the six trillion rials the government had projected to earn from car imports this year would not be realized unless the Khatami administration reduce import duties and relevant formalities.
Gholamreza Tajgardoon, deputy head of MPO for economic affairs, told ISNA that the domestic carmakers must also accept the reality that that relaxed car import tariffs would result in bringing in good quality cars with competitive prices.
"This reality must be digested should car import revenues be realized," he said, adding that car imports has been turned into a politico-economic issue in Iran.
Tajgardoon's remarks came a few weeks after Commerce Minister Mohammad Shariatmadari said car import regulations would not keep on changing, stressing, however, that tariffs would remain unchanged at least until next March.
"I understand that one of the most important reasons why car imports proceed at a slow pace is that some importers are waiting in vain for easing technical criteria and lowering import tariffs," he said, adding that media reports have fanned such rumors in recent months.
The minister told Fars news agency that car import procedures have now been finalized and that the government is not planning to change tariffs until the end of the current (Iranian) year (in March).
"What will certainly not change is the technical criteria, including after-sale services, environmental standards, fuel consumption and safety," he said, adding that the government may consider certain concessions for students and state employees who want to bring in their personal vehicles.
Shariatmadari said last month the government is in no hurry to flood the market with imported cars, stressing that no decision has yet been taken on importing low-priced Chinese vehicles.
"We are not worried about the prospect of these procedures leading to a slowdown in auto imports," he said.

Talks are underway with the giant international oil company Royal/Dutch Shell over a one-billion-dollar petrochemical project.

TEHRAN, Oct. 31--Sixteen private Iranian companies have invested a total of $164.1 million plus 3.6 billion rials in the first phase of the national project to create necessary infrastructure in special economic/petrochemical zones across the country.
According to Fars news agency, four foreign firms have also joined the initiative with a total investment of $590 million.
Talks are underway with the giant international oil company Royal/Dutch Shell over a one-billion-dollar petrochemical project.
The first phase of the crucial project includes acquisition of real estate, construction of roads, water and electricity supply as well as establishment of telecommunication links and construction of buildings, piers and railways.
During March-September, five major petrochemical projects with a total investment of three trillion rials plus $800 million have become operational.
Iran's petrochemical production capacity will reach 15 million tons by March 2006.
German, Swedish and Azeri firms have invested in several petrochemical projects. Foreign investors are keen on undertaking more projects and some of their applications currently under study.
Officials say 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.
The Third Aromatic (Avicenna) project will also be implemented by mid-2005.
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.

Bitumen and asphalt industry officials contend that if the conditions of the roads are to improve, the workforce involved in the field have to undergo training courses on modern techniques.
According to statistics released by Iran Bitumen and Asphalt Institute, some 90 percent of those involved in the industry lack technical knowledge and rely on their experience.
Manouchehr Ehteshami, an expert, told Iran Daily that although the quality of materials used in the industry is vital, the main challenge is the lack of knowledge of the workforce. "If we provide a worker with good quality materials and he does not know how to make the best use of it, we cannot expect improved production," he said, adding that the only way to resolve the bitumen and asphalt industry's problems is to hold training courses.
The official further noted that Management and Planning Organization (MPO) estimates show asphalt industry has suffered huge financial losses in recent years.
However, Mohammad Ali Pour-Shirazi, a member of the Association of Road and Building Contractors, blames part of the problem on the National Iranian Oil Company's dilapidated tar transportation vehicles, stressing that improper transportation lowers the quality of the materials.
He also said asphalt producing units are outdated and wrong materials are used in certain geographical areas, which is why asphalts do not last long on Iran's roads.
While asphalts can be used for at least 12 years in other countries, they must be replaced every five years here. Experts believe if the national bitumen and asphalt industry manages to increase the durability of asphalt to 10 years, the country will save huge amounts per annum.
The key, experts say, lies with academic centers, which must help train specialized workforce in bitumen and asphalt industry.
The Second Seminar on Bitumen and Asphalt, which is to be held in November, could be quite helpful in this respect.

TEHRAN, Oct. 31--The second unit of an onshore refinery for South Pars phases 4 and 5 has gone into operation and the unit is now supplying gas to the nationwide network, Petroenergy Information Network reported.
The Public Relations Department of Pars Oil and Gas Company reported that three weeks after the first unit began supplying gas to the network the second unit also became active.
Once both units operate at full capacity, the refinery will produce one billion cu. ft. (25 million cu. m.) of natural gas per day and the figure will reach two billion cu. ft. (50 million cu. m.) when all four units come on-stream.
Phases 4 and 5 of South Pars Project aim at meeting growing domestic demand for natural gas and gradual increase in exports. They are capable of producing 50 million cu. m. of refined gas, 80,000 barrels of gas condensate, and 40 tons of sulfur per day as well as one million tons of ethane and 1.05 million tons of liquefied petroleum gas (LPG) per year.

A total of $86.6 million worth of cars and auto parts was exported during the current Iranian year.

TEHRAN, Oct. 31--Car exports increased by 2.6-fold in terms of value in the first six months of the current Iranian year which began on March 20, to reach $35.6 million.
According to Mehr news agency, a total of $86.6 million worth of cars and auto parts was exported during the same period, showing a rise of 110 percent against the figure for the same period last year.
Export of heavy vehicles also earned the country some $26 million during the period, when some 4,296 tons of tires and tubes worth $5.4 million were exported.
Tire exports were up by 40 percent in terms of value during March-September.
Iran's auto manufacturing group, Saipa, exported 4,300 cars in the first seven months of the year, registering a 170 percent increase compared to the figure for the same period the previous year.
The company topped the export list among Iranian car manufacturers by earning about $21 million, which showed a 175 percent increase compared to the amount in the same period the previous year.
Based on the report, Syria is the main customer of Saipa products with about 12,000 Pride cars plying on that country's streets.
Pakistan, Bangladesh, Egypt and Armenia are among other Saipa customers.
The Iranian company exported 1,432 and 4,219 sedans in 2002 and 2003 respectively.

TEHRAN, Oct. 31--The project for separating associated gas from oil which is underway at Bandar Imam Petrochemical Complex (BIPC) converts 100,000 barrels associated gas to valuable hydrocarbon cuts per day.
Ahmad Namazi, official in charge of the project, told Petroenergy Information Network that products resulting from separation have numerous uses such as production of ethane, which is used as feed for olefin units and pentane and other hydrocarbon products that are used as feed by aromatic units of the complex.
"Butane and pentane that are produced during separation of associated gas are used as liquefied petroleum gas (LPG) to feed downstream plants producing plastics, alcohols, various chemicals and glycols," he noted.
Two units are currently separating associated gas from oil at Bandar Imam Petrochemical Complex.

BEIJING, Oct. 31--Visiting Iranian Oil Minister Bijan Namdar Zanganeh here Sunday described his visit to China and talks with ranking officials of that country on long-term cooperation as successful.
Talking to IRNA prior to leaving Beijing, he referred to the signing of three oil cooperation agreements with China as the most notable achievement of his visit and said cooperation between the two countries would enter a new phase once the agreements are implemented.
The minister stressed the importance of the memorandum of understanding which calls for annual sales of 10 million tons of natural gas to China and granting China the permission to conduct exploration, extraction and implementation activities in Yadavaran oilfield.
He evaluated talks with heads of major Chinese oil companies as very positive and said the two countries also reached agreements on investments by Chinese companies in oil, gas and petrochemical sectors.
Pointing to the mutual cooperation in the petrochemical sector and investment of Chinese companies in this area in Iran as another appropriate record of bilateral collaboration, the minister hoped that the recent agreements between the two countries would be put into practice as soon as possible.
Zanganeh wound up his three-day visit to China this morning.
During his stay in the country, he conferred with Chinese Foreign Minister Li Zhaoxing, Minister of Commerce Bo Xilai, as well as the deputy prime minister in separate meetings and reviewed issues of mutual interest, particularly in the areas of energy, oil and gas with them.
Accompanied with a high-ranking oil delegation, he also talked to heads of giant Chinese oil companies on cooperation in oil, gas and petrochemical sectors.
Furthermore, he signed three memoranda of understanding on oil cooperation with Chinese companies.
Iran and China signed a memorandum of understanding to construct a gas condensates refinery in Bandar Abbas to be completed within the next three years aiming at producing extra gasoline which constitutes 56 percent of the refinery's output.
Iran's oil Minister and the Chairman of China`s Development and Reforms Commission Ma Kai on Thursday signed an MoU to award Yadavaran oilfield development project to China`s Sinopec as well.
Under the MoU, Sinopec has agreed in return for Yadavaran project to purchase 10 million tons of Iranian liquefied natural gas (LNG) annually over a period of 25 years.
Sinopec will be commissioned to prepare a master development plan (MDP) for Yadavaran in cooperation with 'creditable' international oil corporations.
The MDP will be implemented under a buy-back deal once approved by the National Iranian Oil Company (NIOC).
Zanganeh also participated in a one-day conference on 'Iran-China Cooperation Opportunities in Energy Sector'.