TEHRAN, March 12--Some $1.4 billion will be invested in the construction IranÕs largest aluminum factory in the western city of Nahavand, Hamedan province, announced IranÕs Mining House on Saturday.
According to Fars news agency, the private sector would undertake investments in the project, which, once completed, will greatly increase IranÕs aluminum production capacity.
It further noted that the huge water reserves in the western city as well as easy access to raw materials prompted private enterprises to select Nahavand as the site of the factory.
It suggested that the investment will be the buyback and BOT (build, operate, transfer) modes, adding that once Bank Melli Iran approves the project, the implementation of the project will begin in April.
Experts believe that the 680,000-ton aluminum production target stipulated in the fourth five-year development plan (March 2005-2010) could be met easily given that several giant aluminum production units are up for privatization in the coming years.
The privatization of giant Al-Mahdi Aluminum Complex is in its final stages. Al-Mahdi's production capacity will increase from the current 110,000 tons to 200,000 tons per annum in the year to March 2006.
Aluminum production capacity will reach 230,000 tons per annum during the fourth plan.
Arak Aluminum Complex will also be ready to transfer its shares to private ownership.
Inexpensive energy and raw materials have helped develop the aluminum industry in Iran. However, there are growing concerns about high aluminum prices and continued state monopoly.

MASHHAD, Khorasan Razavi, March 12--AfghanistanÕs Finance Minister Anwar-ul-Haq Ahadi said in Kabul on Saturday that Iran has pledged to provide the war-ravaged country with financial assistance of $50 million in the year to March 2006.
ISNA quoted Voice of Afghan as saying that on his arrival from a three-day official visit to Tehran, the Afghan minister expressed satisfaction about the outcome of his talks with Iranian authorities.
ÓDuring this visit, Iranian officials called for greater economic interaction with Afghanistan,Ó he said, adding that Kabul is also pleased with growing economic ties.
Ahadi said the Iran-Afghan economic commission has been set up, adding that the commission is headed by the two countriesÕ finance ministers.
The Afghan minister said Iran has agreed to pay $10 million for construction of roads in Kabul and another $10 million for a giant telecom project.
He said Iranian industrialists are willing to invest in more Afghan projects.
Ahadi said the second meeting of the joint economic commission would be held within six months.
Trade between Iran and Afghanistan has totaled $260 million in the past two years.
Tehran and Kabul have managed to boost economic interaction within the framework of IranÕs assistances to that countryÕs reconstruction drive.
Iran has tried its best to play a crucial role in rehabilitating postwar economic, social and cultural infrastructure in the war-ravaged country.
Major projects including the Dogharoun-Herat Road and Milak Bridge as well as several power supply, agriculture, development, telecommunication, health, vocational and cultural projects have so far been implemented in Afghanistan by Iranian firms.
Afghan officials are reportedly willing to work with Iranian companies more than European firms given the proximity of the two countries and far lower transportation costs.

Iran, which holds 15 percent of the global gas reserves and 10 percent of the world oil reserves, is willing boost its economic cooperation with friendly nations like India.

TEHRAN, March 12--A petrochemical official said here on Saturday that Indian companies are involved in 60 percent of a major ammoniac and urea project in the southern oil and gas rich region of Asalouyeh, stressing that they would invest a total of $350 million in the project.
Mehdi Saqafi, deputy Asalouyeh petrochemical projects manager, told Fars news agency that India is willing to import chemical fertilizers from Iran given the rise in domestic demand for the product.
ÒThe projectÕs production capacity is estimated at a million tons of urea per annum,Ó he said, adding that a joint venture named Lavan has been established with 60 percent of its stakes held by the Indians.
The official said the project will start with the acquisition of real estate by the Indian side.
He further noted that a South African company has invested $500 million in the Ninth Olefin project in Asalouyeh, adding that a few billion dollars would be invested in the petrochemical sector in the coming years.
Iran Chamber of Commerce, Industries and Mines (ICCIM) said last month it is expecting an investment of $500 million by Indian small- and medium-sized companies in the next five years and sought further deepening of ties between the two countries in oil and petrochemicals sector, India-based Financial Express reported.
Stressing the need to set up joint ventures between companies of the two countries, it said about 200 firms and specific sectors should be identified for this.
Iran has successful businesses with countries like Spain and South Korea through such enterprises.
Welcoming the proposed gas pipeline deal between India and Iran, the ICCIM said it would go a long way in building business ties and creating thousands of jobs.
Iran, which holds 15 percent of the global gas reserves and 10 percent of the world oil reserves, is willing boost its economic cooperation with friendly nations like India.

LNG obtained from phases 11, 12 and 13 of South Pars development project was reserved for exports.

TEHRAN, March 12--Oil Minister Bijan Namdar Zanganeh said here on Saturday that investment in the liquefied natural gas (LNG) sector must come only after the country signs major LNG export agreements with other countries.
ÒIn the LNG sector, we have to start from the end,Ó he said, adding that it is too early to talk about the fate of LNG agreements signed with other countries in the past months.
On the memorandum of understanding signed with Mexico on export of LNG to the Latin American country, the minister told ILNA that signing an agreement is one thing and making it operational is another.
He further noted that the LNG obtained from phases 11, 12 and 13 of South Pars development project was reserved for exports.
ÒWe are now looking for new LNG markets,Ó he said.
Zanganeh said earlier that signing agreements is a routine procedure in concluding contracts for the production and export of liquefied natural gas (LNG).
"After signing any agreement, the implementation usually takes about two years before it becomes a formal contract," he said.
The National Iranian Oil Company signed an agreement in principle with Royal-Dutch Shell, Repsol and IPF companies to build two natural gas liquefaction units and also to study and design Phase 13 of South Pars gas field development project.
The study will take two years, after which a final decision will be made about partnership between the two sides in building natural gas liquefaction plants as well as developing South Pars Phase 13 under a buyback deal.

TEHRAN, March 12--IranÕs OPEC governor said here on Saturday the Organization of Petroleum Exporting CountriesÕ oil basket would be increased from seven to 11 crudes at the upcoming meeting of the member-statesÕ oil officials in Isfahan.
Hossein Kazempour Ardebili told Fars news agency that every member-state would henceforth be represented in the OPEC basket.
The official further noted that the initiative would also change the pricing mechanism for OPEC oil exports, stressing that each member-state will be represented with the dominant type of crude it produces.
He further said that the Kyoto Protocol would not impact the OPEC member-statesÕ oil revenues. ÒAs per this protocol, whose signatories account for two-third of OPEC customers, consumption of fossil energies has to be reduced but this would have no major impact on the OPEC economies,Ó he said, stressing that the OPEC countries can consume clean fuels such as natural gas.
He, however, predicted a decline in global demand for crude oil as a result of the protocolÕs obligations, but said demand for natural gas will go up accordingly.
Earlier, IranÕs top environmentalist called for removing the ambiguities facing the ratification by the constitutional supervisory body Guardians Council (GC) of IranÕs accession to the Kyoto Protocol, expressing hope that the Islamic state would join the protocol as soon as possible.

TEHRAN, March 12--A pro-reform lawmaker said here on Saturday that the government has managed to bring inflation under control, stressing, however, that the rate is still too high.
ÒThere is still a long way to go to resolve the peopleÕs financial problems,Ó said Rassoul Seddiqi Bonabi, adding that the government has failed to be fully responsive to the nation.
The parliamentarian further said that the Khatami administration managed to achieve a 6.7 percent economic growth rate and an unemployment rate of 10.4 percent.
ÒThe unemployment rate, for instance, was targeted at an average of 13 percent in the Third Development Plan (2000-2005),Ó he said, adding that the government scored remarkable successes in the past 12 months.
The lawmaker further said that privatization of a number of state companies was one of the governmentÕs greatest achievements, adding that the statesmen have come to the conclusion that the private sector could handle economic affairs properly.

TEHRAN, March 12--Following the launching of a wind farm with a capacity of 10 MW, the total energy generation capacity from wind in Iran has been estimated at 6,500 MW, announced Mandana Danesh, a researcher at the Atomic Energy Organization of Iran.
Studies on the potentials for using wind energy and determining suitable locations for establishing wind farms were conducted by a team of researchers, under the auspices of Renewable Energy Development Center an Atomic Energy Organization of Iran. The project began eight years ago in two phases.
In the first phase, computer program and software packages were developed and tested. In the second phase, regions which could be used for producing wind energy were identified. The amount of electricity to be generated was estimated. By considering the range of wind speed, the type and capacity of turbines suitable for the region were determined. Studies determining wind duration and strength during a one-year period were conducted in the windy regions. Turbines are installed at locations where sufficient wind blows during most seasons of the year.
The most important criteria for selecting a site were wind direction, changes in speed distribution and coefficient of durability.
Manjil, in the northern province of Gilan, was selected and studied. The areaÕs meteorological data was statistically analyzed. The result of studies from eight stations over a five-year period showed a wind speed of about 11m/sec during 89 percent of the summer.
The area is considered as one of the best regions for utilizing wind energy.
Following the installation of two 500 KW wind power plants in Manjil and Roudbar (Gilan province) that have set a new world record, Iran ordered its first wind farm. The 10 ME project consists of 19 Nord tank 1300KW turbines and eight 550 KW machines. This project was started in 1997 and is being financed by the World Bank, 50 percent of the parts have been fabricated by Iranian companies and the remaining equipment has been imported from Denmark.

Tensions over Iran's nuclear problem' and the crisis in neighboring Iraq have negative effects on Iran's tourism image.

BERLIN, March 12--Iran has to intensify its efforts to attract more European tourists, the Secretary General of the World Tourism Organization (WTO) Francesco Frangialli told IRNA here on Friday.
"Iran has mainly depended on regional tourism from neighboring countries. That's good but in addition it's important to have an increase of tourists from Western Europe," said Frangialli.
Referring to his talks with Iranian Vice President and head of Iran's Cultural Heritage and Tourism Organization Hossein Marashi on the sidelines of this year's ITB tourism fair, Frangialli stressed the urgent need to promote a 'positive image of Iran' to the world in a bid to lure more foreign tourists.
He voiced his organization's readiness to 'help in the promotion of Iran's positive image'.
Frangialli pointed out that 'tensions over Iran's nuclear problem' and the crisis in neighboring Iraq have had negative effects on Iran's tourism image.
Asked about Iran's ambitious project to promote its tourism industry, Frangialli expressed satisfaction that the plan is now 'really underway and being implemented'.
He said his organization's cooperation with Iran focused on three main points--namely launching training programs for Iranian tourism personnel, promoting and enhancing the image of Iran's tourism industry as well as job creation in Iran's tourism sector.
Pointing to the World Tourism Organization's upcoming projects to promote Iran's tourism industry, Frangialli added, "We are contemplating two things: One is to organize press trips to Iran to make the international press familiar with Iranian tourism. The other is a conference in November which links tourism with handicraft production.
"I think a lot of jobs can be created in the handicraft sector when it is tied to the overall tourism development," he said.
Frangialli, who has toured the Islamic Republic on several occasions, praised Iran's 30 percent rise in the number of foreign tourists in 2004, calling it 'fantastic'.
"I am convinced of Iran's excellent tourism potential, especially in terms of natural and cultural tourism," he added.