Economic news in brief (Dec. 31)

Oil price set at $40 in next year budget

TEHRAN — The Oil Ministry and the Management and Planning Organization (MPO) agreed to set the oil price at $40 per barrel in the next Iranian budget (to be started March 21, 2006), an informed source said on Saturday.

Speaking on the condition of anonymity, the source added that the decision is not in opposition with the Fourth Five-Year Development Plan (2005-2010).

On this issue, MP Mohsen Yahyavi described the 40-dollar price as reasonable, given the current hike in the oil demand.

In the current Iranian year budget (started March 21, 2005), the oil price has been set at $28 per barrel.

Iron ore factory to be set up in Kerman Prov.

ZARAND, Kerman Province — The contract on setting up an iron ore factory in the city of Zarand, southeastern Kerman Province was signed on Saturday.

Iran Minerals Producer & Supply Co and Namavaran Co. signed the contract on building Jalalabad Iron Ore Factory that is to produce 3 million tons concentrates.

At the contract-signing ceremony, Firuz Ardeshirian, the managing director of Namavaran Co. — the project commissioner — explained that investment worth 173 million euros is required for implementing this project.

Some 85 percent of the project’s cost will be provided via financing by the Spain-based European banks, and the rest will be supplied out of the governmental resources, he further explained.

The project is to be carried out within 42 months, he added.

5000 MW micro power plants can be built across country

TEHRAN — Mohammad Na’imipur, the project commissioner of small and medium-size hydro power plants on Saturday said that 5000 MW small and medium-size hydro power plants can be set up across the country. So far, studies have been conducted on 1500 MW of the said amount.

Compatibility with the environment as well as easy renovation were the most important features of the small and medium-size hydro power plants he mentioned.

He explained that so far, 11 micro power plants have come on stream in the country. Furthermore, the construction operations of four power plants have been launched, and the construction of three more will be started in the next Iranian year to be started March 21, 2006, he explained.

Na’imipur predicts that no significant governmental budget can be allocated to set up small power plants. Therefore, the domestic investment coupled with the B.O.T (build-operate-transfer) and B.O.O (build-own-operate) methods are the alternatives for establishing these types of power plants, he suggested.

Iran to produce Fiat passenger car late winter

TEHRAN — Iran will start the pilot production of Fiat passenger cars late winter.

The auto was due to be produced at the second half of 2005, but the production was delayed to early 2006.

Bonyan Tose Sanat Pars Company is the Iranian dealership of Fiat Company. According to the plan, Bonyan Co. will produce 200,000 Fiat autos within two phases, by the help of the Turkey-based Fiat Company.

The volume of the investment for production of the said passenger car stands at 200 million euros.

Iranian Bonyan Co. and the Italian Fiat Company signed the cooperation contract on January 27, 2004 on the auto production as well as developing the by-products industry.

Coding system established at 40 customs offices

TEHRAN — The coding system was established in 40 customs offices of the country, the Public Relations Department of Islamic Republic of Iran Customs Administration (IRICA) reported on Saturday.

Implementation of the coding system facilitates rendering services to the cargo owners by the customs offices.

At this system, a special code is dedicated to each trader. The customs formalities are carried out for the trader once his information is evaluated through entering his code to the system. The system also provides the information on the rightness of the trade card of the referees.

The coding system is due to be established in the whole mechanized customs offices across the country by the end of the current Iranian year, falling on March 20, 2006.

Steel production up by 7% in 8 months

TEHRAN — Iran’s production of the raw steel hit over 6 million tons in the first eight months of the current Iranian year (started March 21, 2005), showing a 7-percent growth compared with the corresponding period last year.

Moreover, the production of the steel products hit over 6 million tons in the same period. This has grown by 11 percent compared with the similar period last year.

In this period, steel constituted the highest volume of the export and import among the non-oil commodities.

Within the eight months, over 13 million tons non-oil cargos valued at some $5 billion were exported. Among the exported goods, the iron and steel products constituted 9.14 percent of the whole export value, having the line share in this regard.

In addition, some 4 million tons iron valued at over $2 billion was imported in this period, showing decline as much as 9.16 percent and 6.7 percent in terms of weight and value respectively.

FK/MA

END

MNA