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Domestic Economy
Tue, May 13, 2008

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Health Insurance for All
Shell Out of Gas Project
SP Phase 8 Ready
Boosting Ties With Indonesia
2nd Dam Seminar Underway
Petrochem Output Will Reach 35m Tons
Azeri Electricity Talks to Resume

Health Insurance for All
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Once the medical insurance databank is compiled, only individuals whose names are not registered can be covered by the plan.
According to statistics, close to nine million Iranians do not have any type of health insurance.
Expressing this in an interview with the Persian daily ’Khorasan’, deputy head of Medical Services Insurance Organization elaborated on a plan to provide health insurance to those who are not covered by any insurance services.
Hamid Reza Ghaffari noted that the government has allocated two trillion rials in the budget for the fiscal year March 2008-9 to implement the plan.
He pointed out that the insurance premium currently stands at 55,000 rials, half of which is paid by the beneficiary and the rest by the government. Although a self-insurance program is also available, it has not been well received by the people due to high premium rates, Ghaffari said.
He continued that about 2.5 million needy people who are provided for by Imam Khomeini Relief Committee and State Welfare Organization have also been insured in accordance with Public Insurance Law.
However there are uninsured persons who can neither afford to pay insurance premiums nor are covered by supportive organizations, he said.
Therefore, the plan targets two groups: those uninsured people who can afford the costs and those who cannot.
“It is an ideal situation to cover all the uninsured people but it is not mandatory. This plan only concerns health insurance. It does not include retirement benefits,“he said.
Ghaffari added, “A working group comprising of government representatives is considering ways to implement the plan. Once finalized, it will be put in force.“
Since the premium of the proposed insurance plan is low compared to other kinds of insurance policies such as self-insurance, voluntary insurance and special insurance systems for government employees and armed forces personnel, many insured persons may cancel their insurance contracts with other insurance companies and opt for the proposed insurance system, the official cautioned.
However, once the medical insurance databank is compiled, only individuals whose names are not registered can be covered by the plan, he assured.
Also, deputy health minister said that uninsured individuals used to receive part of the hospital charges from insurance. However on the order of President Mahmoud Ahmadinejad, policies have been adopted to provide insurance to uninsured individuals permanently with the help of the government, said Hassan Aminlou. Therefore, they can benefit from medical services through the insurance system, he added.
Earlier, Minister of Welfare and Social Security Abdolreza Mesri said that the government has drawn up an ambitious plan to provide health insurance to all Iranians.
He commended the performance of the Medical Services Insurance Organization saying, “The organization is one of the best and the most successful entities in rendering insurance services. Nowhere in the world, can you see 20 million villagers provided with health insurance in one year.“
The minister made the remarks in reference to an all-inclusive plan to cover rural and tribal people with medical insurance last year. Over 20 million rural and tribal families are insured under the plan.

Shell Out of Gas Project
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Royal Dutch Shell has pulled out of Phase 13 of Iran’s South Pars gas field, but may join in the later stages of the field’s development.
“We have agreed to the principle of substitution of alternative later phases for the PLNG [Persian liquefied natural gas] project so that the NIOC (National Iranian Oil Company) can proceed with the immediate development of Phase 13,“ Reuters quoted a spokeswoman for the Anglo-Dutch company as saying.
Shell, Europe’s largest oil and gas company, teamed up with Spain’s Repsol to sign a memorandum of understanding with the NIOC in January 2002 to invest $10 billion in the gas project, known as Persian LNG.
The spokeswoman would not give a reason for the decision. Repsol was not available for comment.
Shell’s decision is reportedly due to US pressure to prevent foreign companies from investing in Iran over the country’s nuclear program.
According to a report published in the Spanish daily Expansion in early May, Shell and Repsol were trying to help Iran find new partners for the project, including the Russian energy giant, Gazprom, the Indian Oil Corporation and Chinese companies.

SP Phase 8 Ready
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A phase of the huge South Pars (SP) gas field that is operated by Norwegian StatoilHydro will start production soon, a senior Iranian energy official said.
Mohammad Javad Shams, member of the Pars Oil and Gas Company’s Board of Directors, told Fars News Agency that the eighth phase of South Pars gas field development project will begin production in the month from June 21, followed by phases six and seven. Statoil is responsible for the offshore part of the project.
He said that they would reach full production capacity of 1.3 billion cubic feet (33.8 million cubic meters) each of natural gas per day by next March.
“(This) is about 300 million cubic feet above the yield from other phases which stands at one billion cubic feet a day,“ said Shams, who is the project manager for South Pars’ phases 6-8.
He was speaking a day after Royal Dutch Shell said it had pulled out of developing another phase of South Pars following pressure from US lawmakers.
Washington is spearheading a drive to force Tehran to give up its nuclear rights.

Boosting Ties With Indonesia
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Iran will supply between 150,000 and 180,000 barrels of oil per day to Indonesia from the refinery in Banten or between 12 percent and 14 percent of IndonesiaÕs total need.
Iran will strive to increase trade with Indonesia to 1 percent of the latter’s overall international trade, Iran’s Ambassador to Indonesia Behrooz Kamalvandi said on Saturday.
“For instance, if Indonesia’s international trade totals $200 billion, Iran will try to make the value of its bilateral trade with Indonesia reach 1 percent of the figure, or $2 billion,“ the ambassador told Antara.
“Currently, trade between Indonesia and Iran is only $400 million or less than a quarter of our target,“ he said.
Iran, he said, will continue to work toward further cooperation on major projects with Indonesia.
He said that Iran and Indonesia had concluded agreements to cooperate on two major projects, including the construction of an oil refinery in Banten province, Indonesia, at an investment of $6 billion.
“The second is the construction of a fertilizer factory known as Hengam project in southern Iran whose investment value will reach $700 million in the first phase. The two countries have agreed to contribute 50 percent of the figure,“ he said.
Based on the agreement, Iran will supply between 150,000 and 180,000 barrels of oil per day to Indonesia from the refinery in Banten or between 12 and 14 percent of Indonesia’s total need. Iran’s oil supply is also intended to help Indonesia face the worldwide energy crunch.
“Part of the refinery’s production worth about $2 billion will be exported to Iran,“ Kamalvandi said, adding that the oil refinery in Banten was expected to be completed in 2012.
He said that the oil refinery project in Banten will actually be implemented by three countries: Indonesia, which would control 40 percent of the shares, Iran (40 percent) and Malaysia (20 percent).
On the Hengam fertilizer factory, he said Iran is expected to export one million tons of the plant’s output to Indonesia. In addition to oil and fertilizer, he said, Iran would also supply gas at a lower price to Indonesia on a long-term basis.
Another move by the two countries to enhance relations is cooperation in the technology sector. Indonesia and Iran still have opportunities to develop potentials which have not been exploited and Iran would continue to work with Indonesia to use the opportunities.
The two countries now have harmonious relations, mainly after Indonesia abstained in a vote on the third illegal UN Security Council resolution on Iran’s nuclear program (Resolution 1803) in March.
Meanwhile, secretary-general of Iran’s Cooperatives Organization held talks with chairman of Indonesian Cooperative Council on ways to develop cooperation.
Mohammad Reza Ramezani and Adi Sasono discussed the formation of a technical committee to speed up Tehran-Jakarta economic cooperation.
Based on an agreement signed earlier, the two countries will form a technical committee to remove obstacles to the activities of Iranian and Indonesian businessmen.
Ramezani said that preliminary steps have been taken and the committee is expected to start work in the next few months.
Cooperation in the exchange of scientific, data and economic experiences, holding special exhibits to present cooperatives productions, and promoting investments and trade are included in the agreement.

2nd Dam Seminar Underway
The Second National Seminar on Dams and Hydroelectric Power Plants will begin on Tuesday in Tehran and continue until Thursday, said managing director of Iran Power and Water Resources Development Company.
Abbas Aliabadi told IRNA that the event aims to promote collaboration among researchers, managers and experts involved in dam building and hydroelectric power plant industries and help develop human resources by holding training workshops.
The annual per capita precipitation in Iran stands at 2,000 cubic meters whereas the figure is 8,000 cubic meters in Europe, he noted.
Therefore, supplying potable water from hydroelectric power plants is an achievable goal, the official contended.
Currently, about 77 percent of the demand for water are supplied from dams for generating electricity, he noted. As per targets set in the Fourth Five-Year Economic Development Plan (2005-2010), about 12,000 megawatts of electricity should be generated from hydropower plants from the current figure of 6,000 megawatts, Aliabadi underlined.

Petrochem Output Will Reach 35m Tons
Iran’s petrochemical output will reach 35 million tons in the year to March 2009, announced managing director of Iran’s National Petrochemical Company (NPC).
In the last Iranian year (March 2007-8), 12 petrochemical projects with a total nominal capacity of over 15 million tons came on stream, said Gholamhossein Nejabat.
The projects were valued at $5.8 billion and the country’s petrochemical output increased to 23 million tons, the official added.
NPC’s exports during March 2007-8 exceeded $8 billion, he said, adding that the company signed 7 contracts valued at $2.8 billion during the period, Moj News Agency quoted him as saying.
Italy, Turkey, Japan, the United Arab Emirates, China, India, South Korea, Saudi Arabia, Singapore, Taiwan, and Qatar were the main importers of Iran’s petrochemical products.
The share of petrochemicals in the country’s non-oil exports, which is currently 37 percent, is expected to increase to 40 percent next year, Nejabat said.

Azeri Electricity Talks to Resume
Tehran and Baku will soon continue talks on the export of Azerbaijan’s surplus electricity to Iran, a senior Azeri official told Fars News Agency.
Head of the Azerenergy Company said that Azerbaijan would increase its power generation capacity to 35 billion kilowatt/hour (kW/h) per year in the next few years with the construction of new power stations. The current generation capacity of power stations is 25 billion kWt/h.
“The increase in capacity will enable Azerbaijan to export electricity to other regional countries,“ Etibar Piriverdiyev stated.

Brazilian Agriculture Minister Due
Brazilian Agriculture Minister Reinhold Stephanes will pay an 11-day visit to Iran starting June 8.

OSF Reserves at $81b
The Central Bank of Iran said Oil Stabilization Fund reserves reached over $81 billion in mid-February 2008, up 36.4 percent compared to the amount for the same period a year earlier.

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Spain Expanding Ties
A top Spanish embassy official in Tehran has said the Islamic Republic is Spain’s third biggest trade partner in the Persian Gulf.
“Last year, Spain was the sixth biggest exporter in the European Union and Iran was the country’s third biggest trade partner among Persian Gulf littoral states,“ Presstv quoted Maria Dibes, the Spanish embassy’s economic advisor, as saying.
She further said that Spain is trying to diversify its trade partners from Latin American countries since it has remained unknown in Asia. Dibes made the remarks at the opening ceremony of an exhibition of a three-dimensional model of the Iranian city of Bam. The ancient city was struck by a deadly quake in December 2003, in which more than 40,000 people were killed.
Spain granted $20 million to Iran for the reconstruction of Bam in four stages, one of which is the three-dimensional model of the city, she said.
Spain was one of the 30 countries which took part in April’s International Oil, Gas and Petrochemical Exhibition in Tehran.
Spain’s Repsol is also involved in the development of phase 14 of South Pars gas field.

IPI Transit Fee Deal Soon
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Pakistan Petroleum Minister Khwaja Asif has said that Pakistan and India will soon sign a transit fee agreement on gas supply to India under the proposed Iran-Pakistan-India (IPI) gas pipeline project.
Progress on the gas transit fee issue has been made between India and Pakistan and the two countries would soon sign an agreement,“ the Daily Times quoted Asif as saying.
He said that five to six communicative exchanges have been made between Pakistan and India in recent days and all matters regarding gas transit fee agreement would be settled within the next few days.
Asked whether the government would cap the oil prices in the country before the upcoming budget to help consumers, the minister did not make any commitment for keeping oil prices unchanged before the announcement of next budget.
“It is not right to presume some thing about the hike in oil prices before the next budget,“ he said.
Meanwhile, a senior Pakistani Petroleum Ministry official said that Islamabad and New Delhi are expected to agree on 40 cents per million British thermal unit (mBtu) gas transit fee that would generate around $148 million per annum for Pakistan from India as transit fee.

Electrical Engineering Confab Underway
The 16th Iranian Conference on Electrical Engineering begins on Tuesday at Tarbiat Modarres (instructors’ training) University in Tehran.
An official in charge of the three-day conference said that a number of Iranian and foreign companies active in the fields of electronics, communications, high-voltage electronics and computer will take part in the event which is being held from May 13-15 in an area of 650 square meters, reported IRNA.
Vahid Ahmadi also said that 2,180 articles were submitted to the conference headquarters, of which 625 were accepted.
“The conference aims to provide an opportunity for academics and specialists from national and international electrical engineering community to discuss the latest findings in electrical technology, progress in standards, services and their applications in various branches of electrical engineering,“ he said.
Ahmadi noted that the articles will be presented in 14 halls. “Some 10 articles from the US, Canada, UK, Germany, Malaysia, Japan and Thailand will be read out at the event,“ he added.
Panel and special discussion sessions, workshops and an exhibition will be held on the sidelines.
Concurrent with Chabahar International Conference on Transit and Development of the East Axis, a specialized exhibition on transit and transportation will be held at Tehran’s IRIB International Conference Center on May 24-25.
The objective of the two-day event is to introduce the capabilities and potentials of domestic and foreign companies in the transit and transportation sector with particular emphasis on the importance of transit in the prosperity of national economy. The event will focus on the east axis of the country and developing domestic and international interactions.
At the gathering, ministries, associations, road and transportation organizations, ports and shipping companies, Islamic Republic Railways and a number of foreign firms will showcase their latest achievements in the field.

Mahan Air to Discuss EU Ban
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Mahan Air, a leading private airline from Iran, is continuing negotiations with the European Union to remove an operational ban on its European flights.
Senior executives will meet EU officials in June to negotiate removing the airline from the blacklist, a spokesman said.
An official of Mahan Air told Emirates Business following Mahan Air’s inclusion in the EU list of 150 banned passenger airlines, its three international flights to Birmingham, Manchester and Dusseldorf were suspended as these airports are in EU member countries.
Mahan Air is the only Iranian airline, which is in the EU list of banned passenger airlines from Asian, African and CIS countries. The ban also includes Air Bangladesh and Garuda International--the national carriers of Bangladesh and Indonesia. The EU bans airlines which do not meet European air safety standards.
The ban does not include other Iranian airlines, including the national carrier Iran Air, which flies to several international destinations, including the EU.
Amjad Iqbal Paracha, marketing manager of Mahan Air for the UAE, said the largest Iranian private airline is now servicing its European passengers with a new flight to the Turkish capital Istanbul, which started on March 15, 2008. He added the airline is also planning a new flight to Canada to take care of its passengers to the American continent.
Paracha said that Mahan Air’s flights to Istanbul operate daily except on Mondays and Tuesdays, leaving Tehran at 16.00 hrs GMT and arriving in Istanbul at 18.30 hrs GMT.
The flight connects conveniently with many of Mahan’s other destinations, including Bangkok, New Delhi, Dubai and Irbil.
Despite the EU ban and other restrictions, the company is making profit and manages to get the aircraft maintenance work and spare parts from third countries, he said.
“Mahan Air executives will be meeting EU officials in June to negotiate a way out of the EU blacklist. We have improved the safety requirements according to EU standards,“ he said.
“Due to the US sanctions on Iran, Mahan Air cannot fly to the United States. We have also been in talks with the Canadian government to work out a solution,“ he said.

Technical Services Export Up
About $2 billion worth of technical and engineering services were exported in the year to March 2008, showing a tenfold rise compared to the figure for the preceding year, said Minister of Labor and Social Affairs Mohammad Jahromi.
Speaking after a meeting with his Qatari counterpart, he said, “We will sign a memorandum of understanding on further presence of Iranian specialists in Qatar.“
According to MNA, the minister noted that development activities in Qatar provide a suitable opportunity for the export of technical and engineering services to that country.
Referring to the presence of Iranian workforce in Venezuela, the Caucasian and Persian Gulf littoral states, he hoped that the participation of skilled Iranian workforce in development projects in foreign countries will be increased in cooperation with domestic contractors and the engineering sector.
No figure in available on the number of workers sent to foreign countries.
However, Jahromi said the country is ready to dispatch skilled manpower to Qatar. “We are ready to train and send skilled workers to Qatar once the fields are specified by that country,“ he said.

Call to Increase Greenhouse Cultivation
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Development of greenhouse cultivation, by using state-of-the art-technology will reduce the impacts of drought on agricultural crops, observed deputy agricultural jihad minister for industries and infrastructural affairs, Farid Ejlali.
Speaking in a meeting with directors of production cooperatives, he noted the ministry is planning to expand collaboration with the cooperatives sector.
He called on production cooperatives to set aside 10 percent of their land for cultivating greenhouse products and constructing production complexes, IRNA wote.
Water consumption in greenhouse cultivation is 10 percent of the amount for conventional farming methods.
The official noted that the average yield per hectare of agricultural crops grown in greenhouses is 300 tons.
Ejlali stated that the establishment of livestock breeding and aquaculture units is suitable for the northern and northwestern provinces whereas greenhouse cultivation complexes give better results in warmer regions.
“Laying pipelines for transferring water to farms is among the most effective and inexpensive ways of confronting drought,“ he stated.