In an effort to triple Iran’s petrochemical production capacity from the current nine million tons per year (tpy) to 20 million tpy by the year 2013, the government plans to invest up to $10 billion in a five-phase expansion scheme over the next three years.
Some five billion dollars of the total investment will be directed towards Engineering Procurement (EP) contracts to be signed with both international and local contractors. Only 15 percent of the sum is to be covered by the state-owned National Petrochemical Company (NPC), while the remaining funds will be sought through international financing arrangements, reported IIR.
In a bid to attract foreign investment into the country’s vital petrochemical sector, the Iranian government plans to provide low-cost feedstock as well as offer tax holidays, relax foreign ownership restrictions and delineate Bandar Imam as a special economic zone, all within the framework of the new scheme. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
