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Call for China to Join IPI Pipeline
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Iran will hold Ôfinal talksÕ with India this month to persuade it to join the multi-billion dollar project.
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Indian and Pakistani officials have expressed their interest in seeing China join the Iran-Pakistan-India pipeline (IPI).
Iran and China have already discussed the issue of Chinese participation in the ’Peace Pipeline’ project to supply gas from the Islamic Republic to Pakistan and India, Fars News Agency quoted a Pakistani official as saying on condition of anonymity.
An Indian official has also said his country welcomes and supports the idea of China joining the $7.2 billion project but no concrete proposal has yet been received from China about its involvement in the project.
The official underlined India’s concerns about the security of the gas pipeline but added that India nevertheless intends to implement the project.
China, on the other hand, recently said that it would explore the possibility of joining the gas pipeline project. “China urgently needs energy. Of course, we will be interested but it depends on a lot of things,“ Chinese assistant foreign affairs minister, He Yafei said in Beijing.
China had promised to line up financial resources for the project and has been in contact with Pakistan on the issue, the sources told the influential Dawn newspaper.
Iran will hold ’final talks’ with India this month to persuade it to join the multi-billion dollar project. If India continued to dither under US pressure, Iran will invite China to join the project, said an Iranian Oil Ministry source.
India has not officially indicated that it will ’stay away from the project’ though it has also not come up with any ’commitment to finalize the deal over the past nine months’, the source said.
“We have initialed the gas purchase agreement (with Iran). An inter-governmental framework agreement has also been firmed up to prepare a working group for finalizing the draft pact for the project,“ said the source.
India has the option of using liquefied natural gas but it costs 40 percent more than the gas to be imported from Iran through the proposed IPI pipeline.
In February, China expressed its willingness to join Pakistan and Iran in the proposed Iran-Pakistan-India gas pipeline if India backs out.
Daily Times quoted sources as saying that China has told Pakistan that it was interested in importing the additional gas if India did not join the project.
Pakistan plans to import 2.2 billion cubic feet of gas a day from Iran under the project, and has said it is willing to take an additional 1.05 billion cubic feet if India did not join the project.
They said Iran had no objection to exporting gas to China. If China joined the project, the pipeline might pass through Gilgit, they said, where Pakistan has already approved a project to widen the Karakoram Highway. Pakistan also plans to extend a railway track to China to connect it to the Gwadar port. Chinese experts would visit Pakistan to finalize the route of the pipeline if it joined the project, the sources added.
An Iranian diplomat said the peace pipeline project will restore peace and stability as well as promoting regional economy.
In a meeting with the Indian National Security Advisor, M. K. Narayanan, Iran’s ambassador to New Delhi, Mehdi Nabizadeh, pointed out that President Mahmoud Ahmadinejad recently held constructive talks with the Indian Prime Minister Manmohan Singh on ways to implement the project.
The Iranian diplomat called for the expansion of relations with India based on mutual respect and common interests.
Narayanan cited safety issues, gas prices and the daily increase of energy prices, particularly crude oil, as among India’s concerns about the project.
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Iraq Rail Link Near Completion
Managing director of Islamic Republic of Iran Railways has announced that the Iranian section of the Khorramshahr-Basra railway project which is under-construction now will be completed by the end of the current Iranian year (March 20, 2009).
Hassan Ziari reiterated that the Iranian side of the railway extending from Khorramshahr to Shalamcheh will be built by March, Fars News Agency reported Friday.
The Iraqi side, he stated, is going ahead at a slower pace.
“Forty new and reconditioned locomotives other than the ones imported by the private sector will be added to the country’s fleet by March,“ added the official.
He also noted that Iran welcomes foreign partnership in railway projects, adding that the organization intends to increase its annual cargo and passenger transportation capacity by 10 percent, from the current 25 million to 28 million for passengers and from 30 million to 35 million tons for cargo.
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Carpet House for Mashhad
Deputy commerce minister has announced that Iran’s first ’carpet house’ will open in Mashhad, Khorasan Razavi province, in the near future, according to ISNA.
Morteza Faraji, who is also head of the Iran National Carpet Center (INCC), added that the ’carpet house’ will seek to boost interaction between those involved in the industry, namely weavers, experts, exporters, and designers.
“Carpet house will also provide weavers with quality raw material to reduce and stop the supply of inferior materials,“ he added.
Faraji said earlier that carpet weavers will come under insurance coverage in the year to March 2009.
He told IRNA that the issue, which is among the main concerns of officials, will soon be discussed in the Cabinet’s Social Commission.
The official added that out of the total 800,000 carpet weavers, who are entitled to insurance, 145,000 are covered by Social Security insurance. “50 percent of their insurance premium is paid by the government and the rest by the weavers themselves,“ he said.
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$1b Petrochem Exports Planned
Head of Iran Petrochemical Commercial Company (IPCC) has announced that the company plans to export one billon dollars worth of petrochemical products to China this year.
“China imports 10.5 percent of Iran’s petrochemical products,“ said Mohammad-Ali Zardbani, according to PIN. In the year to March 19, IPCC exported $590 million worth of petrochemical products to China, he noted.
He added that the company’s total exports amounted to $5.5 billion during the period. Of this figure, he said, 30 percent went to the Far East, 32 percent to the Middle East, 13 percent to Europe, 10.5 percent to China, five percent to India, and the remaining 9.5 percent to other Asian and African countries.
The official noted that the import of petrochemical products in the year to March was not significant. “We imported less than $100 million worth of petrochemical products. The most important of this was caustic soda (sodium hydroxide) which is widely used in industries,“ he said.
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Company to Build
Kyrgyz Cement Factory
An Iranian company, Mapsa, has applied to invest 150 million euro in a cement factory in the city of Taskomur in Kyrgyzstan, the company’s managing director told IRNA.
Ali Ahmadi noted that the annual production capacity of the factory is projected to stand at four million tons.
He said that the factory’s fuel will be supplied from Tagneh Coal Mine, located 30 km away from the factory.
The mine, with a reserve of 50 million tons, is considered one of the largest in Kyrgyzstan and is capable of providing fuel for the factory for several decades.
Exploitation of the mine began 20 years ago but was suspended due to the lack of funds. The construction of the cement factory put on tender by the Kyrgyz government.
The final cost of constructing the cement factory and resuming mining activities in the coal mine has been projected to reach 400 million euro, a part of which will be paid by the Kyrgyz government.
The two projects are expected to create 4,000 jobs.
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Agriculture Will Adapt
To Harsh Conditions
A three-year plan to adapt agricultural production to harsh ecological conditions is being compiled and will be enforced in the year to March 2009, disclosed agricultural jihad minister.
Mohammadreza Eskandari explained that the plan envisages production of various crops, aqueduct construction and livestock breeding in difficult conditions such as drought, according to IRNA.
About 100 trillion rials from the (ministry’s) holdings and 250 trillion rials from banking facilities have been considered for funding the plan, he pointed out.
Agricultural Jihad Ministry would not allow the sale of genetically modified crops in the market as long as the bill permitting the entry of these products was not approved by the Majils, the minister underlined.
Currently production of GM crops such as rice, cotton and colza are being conducted across the country only for research purposes, Eskandari elaborated. Since the effects of GM food on consumers are not clear, producers for now are not permitted to sell them in the market, he concluded.
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Semnan Exports 7,000 Tons of Goods
Over 7,290 tons of commodities worth 34.9 billion rials have been exported from Semnan Customs Office in northeastern Iran since the beginning of the current Iranian year on March 20.
3.2% Growth
According to the latest report by the World Bank, Iran’s annual growth rate averaged 3.2 percent in the past ten years and the country is set to join the developed nations within the next 50 years or so.
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Drought Forces Power Cuts
Iran is facing a summer of power cuts after a severe drought slashed output from hydroelectric power plants, the energy minister said.
“The electricity shortage and the cuts will multiply before the start of summer,“ Energy Minister Parviz Fattah was quoted as saying by Mehr News Agency.
He said that there was a shortfall in power generation due to ’drought and lack of water’ in dams. “Production of hydroelectric power must reach 6,500 megawatts but for the moment it is only 1,500 megawatts.“
A spring of sporadic rainfalls has left Iran with a severe drought as it enters summer, which is normally hot and dry except in the humid northern provinces.
Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei has already told Iranians to conserve water. Officials have said a 10-percent reduction in consumption is needed to prevent even worse cuts.
The capital Tehran and other cities have already been hit by cuts of up to three hours in certain areas as authorities seek to make-up the shortfall.
Iran had to cope with major power cuts during the 1980-1988 war with Iraq but since the 1990s the country has invested in major projects, such as hydroelectric dams, to meet the growing demand of over 70 million people.
Meanwhile, a sum of over $163 million was allocated for implementing emergency plans to counter drought.
Deputy Energy Minister for Water and Wastewater Affairs Rasoul Zargar said, “According to the statistics, the country faces a 10 percent shortage in water supplies. We will be able to overcome the problem by harnessing water resources.“
Meanwhile, the director for development and planning of industries and infrastructural affairs of the Ministry of Agricultural Jihad, Mohammad Ali Hejazi said, “Some $1.125 billion will be needed to reduce the impact of drought.“
He said, “Some $375 million has been allotted to the department in the current Iranian year (to March 2009) for reducing the negative impacts of drought. But, we need three times this amount.“
Chinese Auto Co.Plans Assembly Line
Chinese automaker Chongqing Changan Automobile Company which is a partner of Ford Motor says it plans to assemble compact cars in Iran.
The company announced on Friday that it will start to assemble its compact car Benni in Iran next year as it speeds up expansion oversees, Reuters reported.
Changan’s compact Benni, which it developed in-house, will be assembled at a facility near Tehran beginning in the first half of 2009, targeting the local market, the Chinese company said in a statement.
The facility, to be built by its partner Pars Industrial Development Foundation, will have initial annual capacity of 50,000 units, rising to 250,000 eventually, it said.
Changan, which runs a three way tie-up with Ford and its Japanese affiliate Mazda Motor, is among a growing number of ambitious Chinese automakers hoping to build up a global brand name.
It aims to sell 200,000 vehicles overseas in 2010, up sharply from roughly 50,000 last year, a company spokesman said.
The Benni compact hatchback is first model to be sold in Iran. First impressions of the car are good. Large projector headlamps flank a simple grille at the front, while the rear has contemporary vertical tail lamps. Overall, the Benni’s design is neat. Buyers will be pleased that the car doesn’t look glaringly cheap in any way.
A modern 1.3-liter 16-valve engine producing 84bhp and 110Nm of torque sits under the short bonnet. It’s a willing performer that responds readily to throttle inputs, giving the car a lively, nimble feel. However, the lack of sound insulation means the engine makes itself heard constantly. The never-ending wave of mechanical noise, even under mild acceleration, makes for a rather tiring driving experience.
Plus points are the positive clutch action and firm brakes, which help give the Benni the reassuring feel of a properly engineered product.
The car acquits itself quite well on the road and, despite its tall stance, doesn’t feel too top-heavy around corners. There’s a bit of body roll and the steering is vague but this isn’t going to bother drivers at this end of the price spectrum.
Steel Output to Rise
Steel production capacity will increase to five million tons by March following the launching of projected plans in the steel sector, said deputy industries and mines minister on Friday.
Ahmad-Ali Haratinik said while visiting an environment protection project site at Isfahan Steel Complex that despite all shortcomings in the past year, steel projects in the complex have made good progress, reported IRNA.
By launching steel projects in Hormuzgan, Khuzestan and Isfahan steel complexes, steel production will increase to five million tons, he said.
Lending Rates Fixed at 10%
To support producers, the government approved a 10-percent bank lending rate for housing, industries and agricultural sectors in the year to March 2009.
According to Fars News Agency, the government will reimburse the balance as a result of lowering the rate from 12 percent to 10 percent to the banks in the form of subsidies.
“Producers can use banking facilities with an interest rate of 10 percent while the banks’ lending rate will remain at 12 percent,“ it wrote.
The approval was notified by First Vice President Parviz Davoudi to the Ministry of Economic Affairs and Finance.
Meanwhile, the lending rate for loans extended by Irano-Europe Commercial Bank has been set based on the Libor rate plus globally-approved investment risk rate.
Announcing this, the bank’s managing director told ISNA that Irano-Europe Commercial Bank was established in 1971 by a number of German merchants with an initial capital of six million marks.
Currently, its capital is 330 million euros and this figure is expected to reach 700 million euros in 2012, Siavash Naqshineh pointed out.
About 10 million euros worth of asset has been considered for the Iranian branch of the bank, he underlined.
The bank first opened a branch in southern Kish Island in 2005 and last Wednesday the other branch was inaugurated in Tehran, the banker elaborated.
Although Iranian banks are the main stockholders, the Irano-European bank was registered in Germany and operates under European banking regulations and supervision system.
He named Bank of Industries and Mines, Mellat and Tejarat as the shareholders of the Irano-Europe Commercial Bank.
Value of Justice Shares Double
The value of justice share for each person has increased to 10 million rials from five million rials, disclosed head of Iran’s Privatization Organization.
Gholamreza Heidari Kord-Zangeneh explained that justice shares provided to all 25 million people will be worth 10 million rials each.
Those in the fourth and fifth decile of the lowest income groups would henceforth receive 10 million rials in justice shares, he elaborated, according to ISNA.
At the beginning of the plan, about five and 25 million rials were paid in justice shares to each person and a five-member household respectively, the official recalled.
With the increase in the value of justice shares, about 50 million rials will be paid to a five-member family, Kord-Zangeneh pointed out.
About 25 million people have been paid the profit for their justice shares during September 22-Nov. 20.
Also, 17 million new recipients from fourth, fifth and sixth income deciles will be given justice shares by March 2009, he concluded.
The Justice Shares Scheme is aimed at giving a share of the oil wealth to the people, starting with the vulnerable strata.
Gov’t Encouraging Private Investment
The government encourages private investment in various economic sectors, said President Mahmoud Ahmadinejad in a meeting with lawmakers from Mazandaran province.
Removing the problems in the roads sector, supplying potable water, irrigating farmlands and harnessing surface waters were discussed in the meeting, according to Fars News Agency.
The president also talked about drought and water shortage, implementation of machine construction factory in Babol, construction of oil refinery in Mazandaran province, unemployment, textile industries, Tehran-Shomal highway to link the capital to the Caspian coast and the shipbuilding industry with the lawmakers.
At the meeting, the chief executive called for renovating textile industries in the province.
To remove the obstacle facing the construction of oil refinery, Ahmadinejad stressed that negotiations should be held with the head of Department of Environment.
The government has submitted a 20-trillion-rial bill to the Majlis to offset the impacts of drought, recalled Ahmadinejad.
At the same gathering, road and transportation minister disclosed that only 12 kilometers of the project to broaden Firouzkouh-Pol-e Sefid Road is remaining and this would be completed by March 2009.
According to Mohammad Rahmati, some 200 billion rials will be required to complete the Roudehen-Qaemshahr road project. He proposed that the amount be supplied from the Oil Stabilization Fund.
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