TEHRAN, Dec. 12--A constant growth in the government's current expenses would hurt efforts to fund development projects nationwide, the head of Department of Environment (DOE) said.
Addressing the administrative council of Kordestan's Governor General Office, Massoumeh Ebtekar also stressed on Saturday that development and employment are crucial for alleviating poverty.
She said development should not lead to environmental destruction and pollution, Fars News Agency reported.
The top environmental official noted that one of the greatest achievements of the Khatami administration is adoption of long-term policies for all sectors, most notably the economy.
She stressed that DOE has completed initial studies and collected the required data for the important project to fight pollution in major rivers of Iran.
"At present, this project has been approved for 22 rivers," she said.
Thousands of development projects are incomplete in Iran.
Experts contend that some of these projects inherited by the moderate Khatami administration had been launched chiefly for political purposes and lacked economic viability.
A lawmaker said last week that runaway inflation is not the country's main economic predicament and there are thousands of incomplete development projects, which must become fully operational, if economic problems were to be overcome.
Hadi Haqshenas, a member of Majlis Plan, Budget and Audit Commission, told Moj News Agency that the ruling system needs to realize that the completion of developmental projects would help resolve the unemployment dilemma.
"Had half of the recent withdrawals from the Foreign Exchange Reserve Fund been invested in development projects, most of these projects would have been completed by now," he said.

TEHRAN, Dec. 12--An official said here Saturday IranÕs unemployment rate has dropped from 16 percent to 10.4 percent during the Third Five-Year Development Plan (March 2000-2005).
In a meeting with a youth employment official, Deputy Labor Minister for Planning and Policy Affairs Mohammad Reza Sepehri said the government aims to increase private sector participation in job creation, reform pertinent laws and regulations and provide facilities for boosting employment, IRNA reported.
About 70 percent of the Iranian population are below 30 years, making it essential to implement employment schemes for the youth.
He also said the ministry is devising employment strategies in cooperation with the International Labor Organization (ILO).
"Increasing women's participation in labor force is another challenge for future employment plans," he added.
In the first four years of the Third Plan, 2.28 million jobs were created, constituting 78.8 percent of the target.
Based on the Third Plan, an annual average of over 2.57 million jobs should have been created in the first four years of the plan.
Head of Management and Plan Organization Hamid Reza Baradaran-Shoraka has said that reducing the unemployment rate to 8.4 percent during the fourth plan needs an 8-percent economic growth. He said 31.3 percent of the targeted economic growth will be materialized through increases in productivity.
In the past decade, he said, due to a negative capital productivity, production factors did not have a determining effect on domestic growth.
"Hence, achieving the development plan's targets, hinges on changing the current strategy with the aim of more efficient use of resources," he said.
Baradaran-Shoraka said the development plan also envisions that labor and capital productivity will grow by 3.5 and 1 percent, respectively.

Iran's reserves in foreign banks and institutions rose to $18.24 billion in March 2003.

TEHRAN, Dec. 12--A think thank said here Saturday Iran's foreign reserves increased by $2.02 billion in the first half of the current Iranian year (started March 20) in comparison with the corresponding figure of last year, IRNA reported.
Iran's Center for Economic Analysis in a bulletin reported that the net capital account stood at $1.3 billion, which is 80 percent higher than the corresponding figure of last year.
Meanwhile, Iran's reserves in foreign banks and institutions rose to $18.24 billion in March 2003 from $15.97 billion in December 2002 and $14.24 billion in December 2001.
In September, the governor of Central Bank of Iran (CBI) characterized the country's levels of production, investment and employment in the last Iranian year (ended March 19) as 'satisfactory'.
"In some areas, the rate of growth was higher than anticipated," Ebrahim Sheybani said.
Speaking at the 44th session of CBI General Assembly's annual conference, Sheybani added that good results are due to prudent structural reforms carried out in the economy in the past several years.
Formation of Foreign Exchange Reserve Fund, reform and support of foreign investments, continuing issuance of non-inflationary bonds to fund state-sponsored projects, control of surplus liquidity and initiating a transparent approach to resources are some of the constructive steps taken in the economic realm.
Sheybani added that the balance of payments was influenced by crude oil market and international capital markets last year.
The value of non-oil exports and imports were 28.2 percent and 30.7 percent higher, respectively, compared to those of the preceding year.
The trade balance, including oil exports, showed a surplus of $4.993 billion last year.

Although the fleet of vehicles is in desperate need of renovation, the government has so far been unsuccessful in this respect.

TEHRAN, Dec. 12--Since over 90 percent of passenger and cargo are transported via roads, Roads and Transportation Ministry and State Transportation Organization plan to further promote the sector.
Deputy Roads and Transportation Minister Massoud Khansari told ILNA here on Sunday that state officials are working on plans to renovate the ageing fleet of vehicles.
Khansari, who also heads State Transportation Organization, put the number of passengers transported via roads at 653 million in the current Iranian year (started March 20), up from 642 million last year.
Although the fleet is in desperate need of renovation, the official said, the government has so far been unsuccessful in this respect.
He added that more than 5,000 buses would join the fleet by March.
"The average lifespan of the road fleet has currently reached 12.5 years," he said, adding that the figure constitutes a success in comparison to those of developed nations which is between 8 to 10 years.
Khansari noted that 200,000 trucks are currently plying the domestic roads, of which 80,000 are 25 years old.
ÒThe national vehicle manufacturing companies are unable to meet the domestic demand,Ó he said.
On road safety, the official said the ministry has drafted a comprehensive plan to improve road safety which will be forwarded to the government soon.
"The World Bank will initially grant $70 million to help Iran tackle its road safety needs," he said, noting that the credit would increase to $400 million in the long run.
Road accidents are a growing problem worldwide, resulting in around one million deaths and more than 23 million injuries annually. Around 85 percent of these deaths occur in developing countries.
According to statistics, one Iranian dies every 24 minutes as a result of a motor vehicle accident. Experts link the high death toll from road accidents to dilapidated vehicles, reckless driving, insufficient emergency assistance, lack of communication facilities and inadequate emergency centers on roads.

TEHRAN, Dec. 12--Export Promotion Bank of Iran (EDBI) and Venezuela's Foreign Trade Bank (BancoEx) signed a cooperation agreement here Saturday.
According to IRNA, EDBI Managing Director Norouz Kohzadi said the aim of this agreement is to promote commercial relations between Iranian and Venezuelan private companies.
Based on the agreement, the two banking institutions will cooperate in exchanging industrial and trade information, implementing promotional measures on commercial-related issues and holding training programs.
Also, an agreement on granting reciprocal credits is being drafted and will be finalized soon.
In November, Iran and Venezuela signed five memoranda of understanding (MoUs) on expansion of economic and commercial cooperation. The MoUs were signed in the presence of the presidents of the two countries as well as several ministers from both sides.
These MoUs underlined the need for creating suitable legal grounds for businessmen, establishment of commercial representative offices, establishment of a tractor manufacturing company, construction of a cement company as well as cooperation between Islamic Republic of Iran Broadcasting and VenezuelaÕs Ministry of Information and Communications Technology for exchanging radio and television programs.

BERLIN, Dec. 12--Authorities conducted a search of automaker DaimlerChrysler's offices in Stuttgart in connection with the illegal delivery of trucks to Iran, the AP reported a prosecutors' spokeswoman as saying on Saturday.
ÒCustoms inspectors searched the offices Nov. 30 on suspicion that trucks officially bound for Saudi Arabia were instead delivered to Iran,Ó Stuttgart prosecutors' spokeswoman Tomke Beddies said.
Beddies also said the company itself had alerted the authorities to the delivery.
Prosecutors are still investigating who at the company was aware of the delivery.
"The names of those responsible are not known," Beddies said.
Beddies would not comment on specific details of the case, but the Focus weekly reported that the case concerns 453 trucks that could be converted for military purposes.
DaimlerChrysler supports the investigation, the company said.

TEHRAN, Dec. 12--A senior Ministry of Industries and Mines official said a computer designed especially for Iranian users would enter the domestic market in the coming months.
According to Fars News Agency, Reza Ashraf-Semnani, acting deputy minister of industries and mines, said in a report released by the ministry's Public Relations Office that the new computer enjoys sophisticated soft and hard ware systems. It has been manufactured by Iranian engineers and fully complies with the latest standards.
"The ground has now been prepared for developing high-tech industries in Iran," he said, adding that the county could have a say in the development of modern technologies in the world.
The official further noted that the Ministry of Industries and Mines has given top priority to developing high-tech industries as a means of creating greater interactions with the international markets.
He stressed that an exhibition will be held next year to showcase the country's latest achievements in the field of high-tech industries.
Earlier, it was announced that Iranian engineers have managed to design a supercomputer, which is expected to meet the growing national demand for research sources.
Arash Jalalzadeh, executive director of the project, told ILNA that a 'national supercomputer' has been designed by the High-Speed Processor Research Center of Amir Kabir University, Tehran.
He said the project will receive state funds prior to the start of the production phase.
"This supercomputer is designed to become the first high-speed research service center in Iran," he said, adding that the supercomputer will provide various research and industrial centers across Iran with scientific data.
The expert further noted that Iran's national supercomputer is amongst the world's top 200 supercomputers.
"Iran is now one of the world's 25 countries capable of producing supercomputers," he said, adding that only seven Asian states have this capability.

MOSCOW, Dec. 12--Iran will join the energy systems of Russia, the Commonwealth of Independent States (CIS) and Baltic states in 2006, spokeswoman for the RAO Unified Energy Systems of Russia Tatiana Milyayeva said Saturday.
According to her, a protocol on interaction between the Iranian and Russian energy systems via their Azerbaijan's analogue was signed in Tehran on Saturday following talks between RAO UESÕ CEO Anatoly Chubais, Iranian Energy Minister Habibollah Bitaraf and managing director of Iran's Tavanir Company Mohammad Ahmadian.
They discussed electrical energy cooperation between the two countries.
According to Russian News and Information Agency (NOVOSTI), the preliminary agreement on the linkage of the Russian, Azeri and Iranian energy systems was achieved within the trilateral working group.
"The synchronization will provide the stable functioning of energy systems, especially, in the periods of maximal loads and in emergency situations,Ó Milyayeva said.
Meanwhile, Interfax added that Chubais discussed electrical energy cooperation with Iran at negotiations with Iranian Energy Minister Habibollah Bitaraf and the management of the Iranian power operator Tavanir in Tehran on Saturday.
The negotiations resulted, in particular, in the signing of a protocol on synchronizing the operation of the Russian, Iranian and Azerbaijani power grids, UES Press Secretary Margarita Nagoga told Interfax.
The document, which obliges the three countries to synchronize the operation of their power grids in 2006, was signed by UES board member Andrei Rappoport, who arrived in Tehran as part of the Russian delegation, and the management of Tavanir and Azenergy companies.
ÒThe protocol provides for building new power transmission lines between Russia and Azerbaijan and between Azerbaijan and Iran,Ó Nagoga said.

TEHRAN, Dec. 12--A senior oil industry official said here Sunday national petroleum companies control more than 90 percent of the world's hydrocarbon reserves and 75 percent of production, stressing that 33 out of 50 major international oil firms are state-controlled.
According to ILNA, Seyyed Mehdi Mir-Moezzi, managing director of National Iranian Oil Company (NIOC), also said in the first Seminar on NIOC's Quality Control Systems that oil producing countries started commercializing their national oil firms in mid-1980s to boost productivity.
"Commercialization is a process, where state-controlled administrative procedures give way to commercial and economic transactions," he said, adding, however, that the National Iranian Oil Company cannot get commercialized given its complete control over the domestic oil and gas market.
He further noted that the NIOC should employ modern quality control systems to satisfy its customers worldwide.
"Not only must we work to satisfy our customers, we should also encourage other governments to invest in our energy projects," he said.
Iran, Saudi Arabia, the United States and Russia are expected to remain the largest suppliers of crude oil in the world by 2025, when the global demand for petroleum will increase from the current 81 million to 114 million barrels per day. Iran currently produces over four million barrels of crude oil per day.