Mojtaba Lotfi, étudiant en théologie à l'école coranique de Qom, a été jugé, fin juillet 2004, pour avoir publié sur Internet des textes critiques envers les autorités. Ces dernières préparent par ailleurs un projet de loi visant à juguler la dissidence sur le Réseau.
Reporters sans frontières s'inquiète des mesures prises par Téhéran pour museler la Toile et dénonce l'arrestation de Mojtaba Lotfi. "Les autorités ont récemment durci leur ligne vis-à-vis des publications en ligne. Nous avons constaté un resserrement de la censure depuis les élections législatives de février. Le pouvoir semble aujourd'hui franchir une nouvelle étape en s'attaquant directement aux cyberdissidents et en mettant en place un cadre légal qui lui permettra de justifier sa répression", a déclaré l'organisation.
Un cyberdissident jugé
Mojtaba Lotfi, théologien et ancien journaliste du quotidien réformateur Khordad, suspendu en 2000, a été arrêté début mai 2004 et incarcéré à la prison de la ville sainte de Qom. Selon les informations recueillies par Reporters sans frontières, le cyberdissident aurait été jugé fin juillet pour "espionnage" et "publication de fausses informations", mais le verdict n'a pas encore été rendu public par la justice. Mojtaba Lotfi avait publié sur www.naqshineh.com, un site d'informations sur la ville de Qom, un article intitulé "Le respect des droits de l'homme dans les affaires impliquant le clergé". Naqshineh est également l'objet de poursuites judiciaires, en raison notamment d'articles sur les dernières élections législatives. Le site est bloqué depuis mars 2004 sur ordre des autorités de la ville de Qom.
Un projet de loi inquiétant
Reporters sans frontières a étudié la version officielle, parue en février 2004 dans le quotidien Iran, du projet de loi "sur le châtiment des délits liés à Internet". Ce texte met en place un cadre législatif très répressif pour la liberté d'expression sur le Net.
Il prévoit des peines de un à trois ans de prison pour la diffusion "d'informations qui constituent une menace pour la sécurité intérieure ou extérieure du pays", et de cinq à quinze ans de prison si ces informations sont fournies à "des Etats étrangers ou des organisations étrangères".
Ce projet de loi prévoit ensuite de lutter contre les contenus "nauséabonds", comme ceux montrant "des organes ou des actes sexuels - aussi bien des relations hétérosexuelles que des rapports homosexuels ou zoophiles". Les peines prévues pour la diffusion de ce type de contenu peuvent aller jusqu'à un an de prison et dix millions de rials (950 euros) d'amende.
Un des crimes les plus graves reste la diffusion de "fausses informations" concernant le Guide suprême ou un officiel du régime, une offense passible de six mois d'emprisonnement et de dix millions de rials d'amende.
Le projet de loi traite également de la responsabilité des entreprises du secteur de l'Internet (cybercafés et fournisseurs d'accès). Il leur impose de surveiller l'ensemble des contenus auxquels elles donnent accès et de bloquer tous les sites "nauséabonds" ou illégaux. Ces entreprises doivent également alerter la police et l'aider à identifier les personnes ayant diffusé ces contenus. Dans le cas contraire, les propriétaires de ces établissements encourent une peine de cinq ans d'emprisonnement, la fermeture de leur entreprise et l'interdiction de travailler dans le secteur de l'Internet durant une durée à déterminer par le juge. Fournisseurs d'accès et propriétaires de cybercafés doivent en outre conserver pendant trois mois l'ensemble des données de connexion ainsi que l'identité de leurs clients.
La police peut perquisitionner, sans autorisation d'un juge, au domicile d'un internaute ou dans les locaux de toute personne morale dont l'activité est liée à Internet. Elle peut alors saisir n'importe quel matériel ou support informatique. L'individu ou la société en question peut toutefois refuser la perquisition, la police devant dans ce cas obtenir un mandat judiciaire.
Dernier point abordé par le texte de loi : la concordance de la législation nationale avec les conventions internationales en matière d'Internet. Pourtant, si le document demande à une commission d'examiner la conformité des mesures prises par la République islamique d'Iran avec les normes internationales, il précise que "les textes étrangers ne seront pas applicables s'ils sont contraires à la charia ou à la loi iranienne, de même que s'ils vont à l'encontre de la sécurité et de l'intérêt du pays". La commission de concordance sera également chargée d'expliquer ces nouvelles mesures à la communauté internationale.
Source/auteur : www.rsf.org
mardi, novembre 16, 2004
lundi, novembre 15, 2004
Relations économiques Iran - Arménie, le beau fixe
Par Laurence RITTER à Erevan
Le 03/11/2004
Paradoxal mais vrai, les relations entre l’Iran et l’Arménie sont au beau fixe. Si l’histoire a montré que les Perses et les Arméniens se sont souvent affrontés au cours de conflits sanglants, l’indépendance aura provoqué un réchauffement réel. Aujourd’hui, Erevan et Téhéran se réunissent autour de projets communs.
Parce que ses frontières sont toujours fermées par le blocus imposé par la Turquie lors du conflit du Haut-Karabakh, l’Arménie a appris à les contourner en faisant transiter ses importations et exportations par le nord et la Géorgie, mais aussi par le sud et l’Iran.
Tout le long de l’unique axe qui relie l’Arménie à l’Iran, serpentant dans le Zanguézour jusqu’à la ville frontière de Meghri, les poids lourds iraniens roulent à plein pour acheminer leurs marchandises jusqu’à Erevan.
Les marchandises iraniennes abondent sur tous les marchés d’Erevan, du produit vaisselle aux vêtements en passant par des biens d’équipements courants. Surtout, le projet d’acheminer le gaz iranien depuis Téhéran jusqu’en Arménie via la construction d’un pipeline est dans sa phase finale. Les accords sont signés et le tracé du gazoduc décidé.
L’Arménie, qui revend déjà son électricité, sera très rapidement quasi autosuffisante en énergie de base. Un enjeu vital après les années 1992 et 1993 : pendant deux ans, l’électricité et le gaz coupés, l’Arménie survivait en brûlant le bois des portes d’immeubles et des arbres dans d’antiques poêles à bois. Aujourd’hui, le gaz a été réinstallé dans un nombre important d’immeubles, les conduites refaites, les compteurs reposés.
Quant à la communauté arménienne d’Iran, sans doute l’une de plus florissantes de toute la diaspora jusqu’à la révolution islamique, elle traverse de plus en plus facilement la frontière, achète à Erevan appartements et petites boutiques. Elle prépare en fait moins son installation définitive qu’elle ne se s’assure un refuge potentiel en cas de durcissement du régime.
Les Irana Hay (Arméniens d’Iran) constituent sans doute la catégorie diasporique la plus représentée dans le pays. Elle parle l’arménien oriental, comme le reste du pays, avec un accent chantant, et sa présence se fond naturellement dans le paysage national, le tout sous la bénédiction de Erevan et de Téhéran réunis autour de projets communs. Une démonstration supplémentaire, si l’on en avait encore besoin, que dans ce complexe Caucase, les liens entre Etats ne recoupent pas forcément les lignes d’appartenance religieuse.
Le 03/11/2004
Paradoxal mais vrai, les relations entre l’Iran et l’Arménie sont au beau fixe. Si l’histoire a montré que les Perses et les Arméniens se sont souvent affrontés au cours de conflits sanglants, l’indépendance aura provoqué un réchauffement réel. Aujourd’hui, Erevan et Téhéran se réunissent autour de projets communs.
Parce que ses frontières sont toujours fermées par le blocus imposé par la Turquie lors du conflit du Haut-Karabakh, l’Arménie a appris à les contourner en faisant transiter ses importations et exportations par le nord et la Géorgie, mais aussi par le sud et l’Iran.
Tout le long de l’unique axe qui relie l’Arménie à l’Iran, serpentant dans le Zanguézour jusqu’à la ville frontière de Meghri, les poids lourds iraniens roulent à plein pour acheminer leurs marchandises jusqu’à Erevan.
Les marchandises iraniennes abondent sur tous les marchés d’Erevan, du produit vaisselle aux vêtements en passant par des biens d’équipements courants. Surtout, le projet d’acheminer le gaz iranien depuis Téhéran jusqu’en Arménie via la construction d’un pipeline est dans sa phase finale. Les accords sont signés et le tracé du gazoduc décidé.
L’Arménie, qui revend déjà son électricité, sera très rapidement quasi autosuffisante en énergie de base. Un enjeu vital après les années 1992 et 1993 : pendant deux ans, l’électricité et le gaz coupés, l’Arménie survivait en brûlant le bois des portes d’immeubles et des arbres dans d’antiques poêles à bois. Aujourd’hui, le gaz a été réinstallé dans un nombre important d’immeubles, les conduites refaites, les compteurs reposés.
Quant à la communauté arménienne d’Iran, sans doute l’une de plus florissantes de toute la diaspora jusqu’à la révolution islamique, elle traverse de plus en plus facilement la frontière, achète à Erevan appartements et petites boutiques. Elle prépare en fait moins son installation définitive qu’elle ne se s’assure un refuge potentiel en cas de durcissement du régime.
Les Irana Hay (Arméniens d’Iran) constituent sans doute la catégorie diasporique la plus représentée dans le pays. Elle parle l’arménien oriental, comme le reste du pays, avec un accent chantant, et sa présence se fond naturellement dans le paysage national, le tout sous la bénédiction de Erevan et de Téhéran réunis autour de projets communs. Une démonstration supplémentaire, si l’on en avait encore besoin, que dans ce complexe Caucase, les liens entre Etats ne recoupent pas forcément les lignes d’appartenance religieuse.
vendredi, novembre 05, 2004
Les échanges commerciaux entre la France et l’Iran au premier semestre 2004
L’Iran est, de nouveau, un partenaire commercial majeur pour la France. La forte reprise de nos exportations, amorcée il y a trois ans, s’est confirmée en 2003 si bien que l’Iran est devenu le 11ème excédent du commerce extérieur français. Cette tendance s’accentue encore au premier semestre 2004 au cours duquel ce pays a encore gagné une place. Toujours portées par une conjoncture économique favorable, nos ventes pourraient, à terme, souffrir de leur trop forte concentration sur le secteur automobile et d’une relative stagnation du secteur des biens d’équipement professionnels
mercredi, octobre 20, 2004
La liberté de la presse : le droit de réponse
Le quotidien Yas-e no, a été interdit de publication pour dix jours à compter du lundi 29 septembre 2004 pour avoir refusé de publier, pour la seconde fois, un même droit de réponse du procureur de Téhéran, Saïd Mortazavi. Le quotidien, qui a fini par céder à toutes les exigences du procureur, a obtenu l'autorisation de reparaître à partir du mercredi 1er octobre.
Le procureur de Téhéran et ancien juge de la presse, a fermé le quotidien Yas-e no suite à la pratique du droit de réponse que permet l'article 23 de la loi de la presse. Celui-ci prévoit que le journal qui reçoit une réponse à un article doit la publier, avec le titre initial de l'article mis en cause, dans la même rubrique que l'article cité, et dans son intégralité, à condition que le droit de réponse ne soit pas deux fois plus long que l'article initial. Le procureur a ainsi adressé plusieurs ripostes à des articles de Yas-e no concernant notamment l'affaire Zahra Kazemi et les conditions de détention d'Abbas Abdi, journaliste emprisonné depuis plusieurs mois. La dernière lettre envoyée, d'une dizaine de pages (sur les seize du quotidien), a été publiée, avec quelques coupes, dans l'édition du samedi
27 septembre. Considérant qu'elle était incomplète et trop proche d'articles rendant compte de la grève de la faim d'Abbas Abdi, le procureur a demandé sa reparution intégrale (ce qui représente 123 pages de format A4!) dans l'édition du lendemain, à la une du journal, ce qu'a refusé la rédaction de Yas-e no, avant de plier sous les exigeances du procureur.
Un autre journaliste a été condamnée pour ses écrits ainsi que pour sa signature à une pétition pour la libération de prisonniers, par le tribunal révolutionnaire de Téhéran à trois ans de prison avec sursis pour " atteinte à la sûreté de l'Etat " et " propagande contre le régime ". Eskandar
Deldam, journaliste à l'hebdomadaire Tabarestan, aujourd'hui suspendu, a, quant à lui, été convoqué la semaine dernière par la 6ème section des services du procureur, suite à un article satirique sur la radio-télévision iranienne, dépendant directement du guide de la République Islamique, Ali Khamenei. Le 27 septembre Mohsen Sazgara, directeur du site Alliran et du quotidien réformateur Jameh (fermé), inculpé pour atteinte à la sécurité nationale, insulte au Guide de la République et propagande contre l'Etat, a été condamné à un an de prison ferme par le tribunal révolutionnaire de Téhéran. Son avocat a précisé que le procès s'est déroulé à huis clos, et que le tribunal n'a pas précisé pour laquelle des accusations ce jugement portait.
Le procureur de Téhéran et ancien juge de la presse, a fermé le quotidien Yas-e no suite à la pratique du droit de réponse que permet l'article 23 de la loi de la presse. Celui-ci prévoit que le journal qui reçoit une réponse à un article doit la publier, avec le titre initial de l'article mis en cause, dans la même rubrique que l'article cité, et dans son intégralité, à condition que le droit de réponse ne soit pas deux fois plus long que l'article initial. Le procureur a ainsi adressé plusieurs ripostes à des articles de Yas-e no concernant notamment l'affaire Zahra Kazemi et les conditions de détention d'Abbas Abdi, journaliste emprisonné depuis plusieurs mois. La dernière lettre envoyée, d'une dizaine de pages (sur les seize du quotidien), a été publiée, avec quelques coupes, dans l'édition du samedi
27 septembre. Considérant qu'elle était incomplète et trop proche d'articles rendant compte de la grève de la faim d'Abbas Abdi, le procureur a demandé sa reparution intégrale (ce qui représente 123 pages de format A4!) dans l'édition du lendemain, à la une du journal, ce qu'a refusé la rédaction de Yas-e no, avant de plier sous les exigeances du procureur.
Un autre journaliste a été condamnée pour ses écrits ainsi que pour sa signature à une pétition pour la libération de prisonniers, par le tribunal révolutionnaire de Téhéran à trois ans de prison avec sursis pour " atteinte à la sûreté de l'Etat " et " propagande contre le régime ". Eskandar
Deldam, journaliste à l'hebdomadaire Tabarestan, aujourd'hui suspendu, a, quant à lui, été convoqué la semaine dernière par la 6ème section des services du procureur, suite à un article satirique sur la radio-télévision iranienne, dépendant directement du guide de la République Islamique, Ali Khamenei. Le 27 septembre Mohsen Sazgara, directeur du site Alliran et du quotidien réformateur Jameh (fermé), inculpé pour atteinte à la sécurité nationale, insulte au Guide de la République et propagande contre l'Etat, a été condamné à un an de prison ferme par le tribunal révolutionnaire de Téhéran. Son avocat a précisé que le procès s'est déroulé à huis clos, et que le tribunal n'a pas précisé pour laquelle des accusations ce jugement portait.
samedi, août 21, 2004
Internet : Reformist Web Sites Buck Iranian Press Laws
Iran, Wired
Reformist Web Sites Buck Iranian Press Laws
Shahram Sokooti
World Press Review correspondent
Tehran, Iran
Aug. 20, 2002
A young woman sips tea in Tehran's first Internet cafe, Dec. 8, 2001 (Photo: AFP).
In a busy downtown Tehran Internet cafe, young people are taking turns checking the news and sipping tea while talking about closure of another reformist newspaper by the conservative judiciary.
"I used to check the foreign news on the Web, and chat of course," says Faramarz, 22, a language student. "But now I mainly check the Internet for the news about what's going on in Iran." In the latest clash between Iranian refomists and hard-liners it seems that the reformsits have found a new haven which is beyond the reach and understanding of the hard-liners: cyber space. In the past few weeks a major reformist newspaper, Norooz (New Day) was shut down, and its publisher, Mohsen Mirdamadi, the head of the Iranian Parliament's Security and Foreign Affairs Committee, was sentenced to six months in prison. A week later the daily Ayeneh (Mirror), which replaced it, was closed after a week. Rooz-eh No (New Day) was also prevented from publishing by the conservative judiciary, which has closed more than 50 newspapers over the past three years and sentenced their writers to imprisonment and flogging.
Lacking reformist papers to publish their work, and fearful of jail terms and floggings, reformist writers have chosen the Internet as an outlet for their opinions. Many of the reports in the new reformist Web sites would quickly shutter a newspaper's offices. The reformist Web site Emrooz.org recently broke a story on conservatives' plan to start a chain of brothels called "houses of chastity." These dens of virtue quickly became the subject of numerous bad jokes. Soon after, the hard-liners condemned the plan as a rumor propagated by enemies of the state, and no one took responsibility for proposing it.
Another reformist Web site, Rooydad, is maintained by Iran's main reformist party, Participation Front. Rooydad recently reported a meeting between Saddam Hussein's son, Qusai, and a senior commander of the Iranian Revolutionary Guards, in which Qusai Hussein asked for Iran's help when and if the United States attacks Iraq. Iran's foreign ministry and the Revolutionary Guards initially denied the reports, but Rooydad—bolstered by editors who serve in Iran's intelligence service—produced their evidence. Eventually, the foreign ministry and the guards were forced to concede the meeting had indeed taken place.
"You see, writers must write. Besides, we don't know any other profession," one of the editors of Emrooz, who didn't want to be identified, recently explained. "So far, the Internet has provided us with a safe environment in which we can work without the judiciary sticking its nose into our affairs." Although Iran's restrictive press laws do cover the Internet, the judiciary has yet to crack down on critical Web sites, perhaps because the traditional clergy is unfamiliar with the Web and because very few Iranians have access to the medium.
"Usually the closure of a newspaper starts with an article in Kayhan (Universe) [the hardliner's main organ,]" says Emrooz's editor. "Then it's read by a high-ranking conservative cleric, and then a paper or a writer is condemned in Friday prayer sermons. Fortunately for us, although Kayhan has repeatedly have called us 'parasites and leftovers from enemy newspapers' and asked for the closure of the site, the clerics haven't bothered to take a look at what we do on the Net."
As more Iranians turn to the Internet to get news, rumors are spreading among Internet users around the country that the hardliners are preparing to do in cyber space what they have done in print: shut down and restrict sources of information. Yet the young people in Tehran's Internet cafe are optimistic. "Of course we are worried that they might limit Internet Service Providers to a few which are run and controlled by the government," says Faramarz. "But even then, we will use something else. I've heard of these small satellite dishes that connect you to the Internet. What will they do with that?"
Reformist Web Sites Buck Iranian Press Laws
Shahram Sokooti
World Press Review correspondent
Tehran, Iran
Aug. 20, 2002
A young woman sips tea in Tehran's first Internet cafe, Dec. 8, 2001 (Photo: AFP).
In a busy downtown Tehran Internet cafe, young people are taking turns checking the news and sipping tea while talking about closure of another reformist newspaper by the conservative judiciary.
"I used to check the foreign news on the Web, and chat of course," says Faramarz, 22, a language student. "But now I mainly check the Internet for the news about what's going on in Iran." In the latest clash between Iranian refomists and hard-liners it seems that the reformsits have found a new haven which is beyond the reach and understanding of the hard-liners: cyber space. In the past few weeks a major reformist newspaper, Norooz (New Day) was shut down, and its publisher, Mohsen Mirdamadi, the head of the Iranian Parliament's Security and Foreign Affairs Committee, was sentenced to six months in prison. A week later the daily Ayeneh (Mirror), which replaced it, was closed after a week. Rooz-eh No (New Day) was also prevented from publishing by the conservative judiciary, which has closed more than 50 newspapers over the past three years and sentenced their writers to imprisonment and flogging.
Lacking reformist papers to publish their work, and fearful of jail terms and floggings, reformist writers have chosen the Internet as an outlet for their opinions. Many of the reports in the new reformist Web sites would quickly shutter a newspaper's offices. The reformist Web site Emrooz.org recently broke a story on conservatives' plan to start a chain of brothels called "houses of chastity." These dens of virtue quickly became the subject of numerous bad jokes. Soon after, the hard-liners condemned the plan as a rumor propagated by enemies of the state, and no one took responsibility for proposing it.
Another reformist Web site, Rooydad, is maintained by Iran's main reformist party, Participation Front. Rooydad recently reported a meeting between Saddam Hussein's son, Qusai, and a senior commander of the Iranian Revolutionary Guards, in which Qusai Hussein asked for Iran's help when and if the United States attacks Iraq. Iran's foreign ministry and the Revolutionary Guards initially denied the reports, but Rooydad—bolstered by editors who serve in Iran's intelligence service—produced their evidence. Eventually, the foreign ministry and the guards were forced to concede the meeting had indeed taken place.
"You see, writers must write. Besides, we don't know any other profession," one of the editors of Emrooz, who didn't want to be identified, recently explained. "So far, the Internet has provided us with a safe environment in which we can work without the judiciary sticking its nose into our affairs." Although Iran's restrictive press laws do cover the Internet, the judiciary has yet to crack down on critical Web sites, perhaps because the traditional clergy is unfamiliar with the Web and because very few Iranians have access to the medium.
"Usually the closure of a newspaper starts with an article in Kayhan (Universe) [the hardliner's main organ,]" says Emrooz's editor. "Then it's read by a high-ranking conservative cleric, and then a paper or a writer is condemned in Friday prayer sermons. Fortunately for us, although Kayhan has repeatedly have called us 'parasites and leftovers from enemy newspapers' and asked for the closure of the site, the clerics haven't bothered to take a look at what we do on the Net."
As more Iranians turn to the Internet to get news, rumors are spreading among Internet users around the country that the hardliners are preparing to do in cyber space what they have done in print: shut down and restrict sources of information. Yet the young people in Tehran's Internet cafe are optimistic. "Of course we are worried that they might limit Internet Service Providers to a few which are run and controlled by the government," says Faramarz. "But even then, we will use something else. I've heard of these small satellite dishes that connect you to the Internet. What will they do with that?"
samedi, juillet 17, 2004
Oil & Gas towards Privatization
Economic Trends, Monthly Magazine, Vol. 2, No. 6, Jul. 2004, Page 24-25
By : Reza Molavi
The income generated from privatization could be used to retrain the national workforce and help assimilate them into the private sector. It could also reduce the existing public sector debt, by reducing subsidies being provided to these institutions.
A key strategic question facing Iran is the type and degree of restructuring prior to privatization. Each country's strategy must be specific and tailored to its particular circumstances. Privatization must be synchronized with other structural reforms; simply transferring public enterprises to the private sector is not enough. Privatization works best when reforms dealing with macroeconomic stabilization, liberalization of trade, tariff,
price and competition policies, regulations to control monopolies and some types of financial reform (including interest rate reform) are . in place. When privatization is undertaken ahead of these reforms there is a high risk of . failure. However, governments generally have a limited time to affect economic change; they should first concentrate on clarifying the rules governing private sector activity. Clear policies reassure both investors and private sector so that privatization, when it occurs, will be governed by predictable rules. Privatization can also be used as an anchor for fiscal stabilization of the economy.
It would be prudent for the government of Iran to consider the following issues in the privatization of the Energy sector:
Legal Restructuring and Corporatisation
Prior to privatization, industries would be required to incorporate (corporatisation). This would entail creating separate accounts and balance sheets and redefining the relationship between the parent ministry and the corporatised entity.
Employee Restructuring
Given the over-staffing of Iran's public energy enterprises, privatization would require an explicit policy. Prior to privatization, the First is to reduce the number of employees using voluntary redundancy and golden hand shakes, prior to privatization.
Tariffs
As mentioned above, current subsidies in Iran do not allow the international market valuation of commodities, and therefore are out of line with costs. In most cases, some of the institutions could not exist without the subsidies. Privatization would require rethinking the wisdom of such pricing policies. Post Privatization tariff structures would need to be explicitly defined by the government.
Competition And Industry Structure
The privatization of the monopoly owned by the Oil Ministry is like privatizing the entire sector. Care should be taken as to which of the affiliated companies should be privatized first.
Inter-Enterprise and Government Arrears
Like many governmental agencies, the oil industry has problems with collecting their bills from government agencies and departments who are major users of oil and gas. The existing backlog of arrears would require some radical solutions and the future regulations would have to be developed.
The "Strategic" Sectors Issue
“It is important for the government to deter: mine their role in the oil sector and what type of privatization, if any, to pursue. It is difficult for technical experts to respond to arguments for a continuing the role of the government as a producer in an industry, because the industry is described as "strategic." The II strategic argument can be used to justify the public ownership of virtually any industry '" including rice and wheat. In dealing with the issue of "strategic industry", the government should also consider the relevance of the “golden share" whereby the government retains a veto on key decisions of the privatized company. The golden share concept has been used successfully by several countries who privatized strategic sectors.
Regulation
A significant reason for government ownership of infrastructure enterprises, particularly those operating in monopolies, is the fear that the private sector will abuse its market power by reducing the quality of service or increasing prices. Privatization will only lead to an increase in the standard of living if it is accompanied by proper government regulation. There are many examples from international experience in the establishment and rules of regulation; Iran will have to invest in, and work hard to, adopt the best practical regulation models. This will require government resources and commitment.
Role of Foreigners
In the case of Iran, with its own particular type of paranoia from foreign domination and hegemony, there are sufficient quantities of domestic private capital. If the government chooses, foreigners could be kept out of the purchase of upstream activities entirely. Foreigners would be allowed to partner with domestic entities on upstream activities with Buy Back schemes or Product Sharing Agreements. To attract the large multi-national oil industries with their expertise and financing capabilities, it would be prudent to offer a small percentage of the stake in the down stream activities.
The strongest charge against privatization has generally been political. Firstly, it has been argued that because it has been sponsored by foreign actors, privatization reflects the interests of advanced industrial states which occupy a prominent place in the world economy, such as those of Western Europe and the United States. The foreign agencies urging privatization are mainly the IMF, the World Bank, and the USAID.
Secondly, it is considered to be a response to the political interests of the business classes, foreign and domestic, who put claims on the state and seek relief from obligations to the public. Businessmen understand both that achieving their economic interests requires political action and that, by their location and wealth, they enjoy considerable leverage. Finally, business classes seek to dominate the state with a view to affect the distribution of national income in their own favor at the expense of the masses. A variant on this last point is that the poor are bound to become poorer in a tree-market economy because the increasing wealth of the few and the pairing of the economy to advanced industrial nations contributes to inflation and the lowering purchasing capacity of the poor. Cognizant of this argument, political leaders fear that privatization and rapid liberalization of the economy may lead to political turmoil, a turmoil which could undermine their regimes.
Recommendations :
When the actual privatization schemes within NIOC (National Iran Oil Company) are implemented, the private sector will look to both internal and external sources to fund the acquisition of the shares. Generally, we should expect domestic deposits to absorb most of the financing burden. This is another reason why the process should be a gradual one; otherwise the reduction in deposits could force banks to curtail lending and may lead to a credit crunch. While the aim is to bring larger private sector participation, a rush to privatization without careful planning could end up disrupting private sector activities.
There are companies where the government has sold part of its share holdings without disturbing the stock market. Successful examples in public and private partnership include the selling of government shares in industrial, electricity, petrochemical, agriculture. Cement and services companies. As most of these companies still operate in a monopolistic or semi-monopolistic setting, and as they are the only providers of the goods and/or services they offer. Clear and efficient regulations of their behavior need to be in place before they can become candidates for privatization. Some of them need to be reorganized and nursed to profitability before they are floated in the stock market. Airlines, NIOC helicopter services. Tanker companies (NITC), telecommunications. Public transport companies and port services are among the grouping which will need re-organization.
While one can not generalize, some of the affiliated companies of NIOC are pricing their national assets and labor out of the private sector reach, thus weakening the relationship between productivity and wages. Over protection of local labor has given the private sector a disincentive to hire locals, an issue that needs to be addressed Furthermore, over pricing the worth of the affiliated companies discourages serious bidders from participating in the privatization of those entities.
Finally, it should be noted that privatization does not necessarily mean the total transfer of ownership from the government to the private sector. Many of the government's concerns may be partially addressed by retaining a minority government ownership, as well as instituting efficient regulation. Partial government ownership should be transitional and it should not convey the notion that the government is guaranteeing private investment.
For privatization to work in general and specifically to make privatization work in the Oil and Gas sectors, the Iranian government must be able to analyze complex policy issues, make legal changes to the existing laws, choose among alternative privatization methods (if a home grown model or template is not yet available), and complete privatization deals with transparency. Privatization is more skill and information intensive than other economic reforms. While prices, tariffs, or interest rates can be deregulated relatively easily, the expertise needed for government involvement in privatization can not be achieved without significant study and preparation. The choice of public enterprises to be privatized is not only politically controversial but requires sophisticated technical analysis, as do financial restructuring, valuation, and the design of regulatory systems.
Reza Molavi is a fellow at Durham University’s IMEIS (in statute of Middle Eastern and Islamic Studies)
By : Reza Molavi
The privatization of public sector institutions is one of the general objectives and strategic principles of Iran's development plans. The current government of Iran, through the various available arrangements, has made public that they are committed to increasing the number of privatized enterprises and, by doing so, wish to increase the role of the private sector in the economy.Privatization, it is generally believed, could reduce the government's financial burden and, in some cases, turn public sector bureaucratic institutions into lean, competitive, and efficient industries.
The income generated from privatization could be used to retrain the national workforce and help assimilate them into the private sector. It could also reduce the existing public sector debt, by reducing subsidies being provided to these institutions.
A key strategic question facing Iran is the type and degree of restructuring prior to privatization. Each country's strategy must be specific and tailored to its particular circumstances. Privatization must be synchronized with other structural reforms; simply transferring public enterprises to the private sector is not enough. Privatization works best when reforms dealing with macroeconomic stabilization, liberalization of trade, tariff,
price and competition policies, regulations to control monopolies and some types of financial reform (including interest rate reform) are . in place. When privatization is undertaken ahead of these reforms there is a high risk of . failure. However, governments generally have a limited time to affect economic change; they should first concentrate on clarifying the rules governing private sector activity. Clear policies reassure both investors and private sector so that privatization, when it occurs, will be governed by predictable rules. Privatization can also be used as an anchor for fiscal stabilization of the economy.
It would be prudent for the government of Iran to consider the following issues in the privatization of the Energy sector:
Legal Restructuring and Corporatisation
Prior to privatization, industries would be required to incorporate (corporatisation). This would entail creating separate accounts and balance sheets and redefining the relationship between the parent ministry and the corporatised entity.
Employee Restructuring
Given the over-staffing of Iran's public energy enterprises, privatization would require an explicit policy. Prior to privatization, the First is to reduce the number of employees using voluntary redundancy and golden hand shakes, prior to privatization.
Tariffs
As mentioned above, current subsidies in Iran do not allow the international market valuation of commodities, and therefore are out of line with costs. In most cases, some of the institutions could not exist without the subsidies. Privatization would require rethinking the wisdom of such pricing policies. Post Privatization tariff structures would need to be explicitly defined by the government.
Competition And Industry Structure
The privatization of the monopoly owned by the Oil Ministry is like privatizing the entire sector. Care should be taken as to which of the affiliated companies should be privatized first.
Inter-Enterprise and Government Arrears
Like many governmental agencies, the oil industry has problems with collecting their bills from government agencies and departments who are major users of oil and gas. The existing backlog of arrears would require some radical solutions and the future regulations would have to be developed.
The "Strategic" Sectors Issue
“It is important for the government to deter: mine their role in the oil sector and what type of privatization, if any, to pursue. It is difficult for technical experts to respond to arguments for a continuing the role of the government as a producer in an industry, because the industry is described as "strategic." The II strategic argument can be used to justify the public ownership of virtually any industry '" including rice and wheat. In dealing with the issue of "strategic industry", the government should also consider the relevance of the “golden share" whereby the government retains a veto on key decisions of the privatized company. The golden share concept has been used successfully by several countries who privatized strategic sectors.
Regulation
A significant reason for government ownership of infrastructure enterprises, particularly those operating in monopolies, is the fear that the private sector will abuse its market power by reducing the quality of service or increasing prices. Privatization will only lead to an increase in the standard of living if it is accompanied by proper government regulation. There are many examples from international experience in the establishment and rules of regulation; Iran will have to invest in, and work hard to, adopt the best practical regulation models. This will require government resources and commitment.
Role of Foreigners
In the case of Iran, with its own particular type of paranoia from foreign domination and hegemony, there are sufficient quantities of domestic private capital. If the government chooses, foreigners could be kept out of the purchase of upstream activities entirely. Foreigners would be allowed to partner with domestic entities on upstream activities with Buy Back schemes or Product Sharing Agreements. To attract the large multi-national oil industries with their expertise and financing capabilities, it would be prudent to offer a small percentage of the stake in the down stream activities.
The strongest charge against privatization has generally been political. Firstly, it has been argued that because it has been sponsored by foreign actors, privatization reflects the interests of advanced industrial states which occupy a prominent place in the world economy, such as those of Western Europe and the United States. The foreign agencies urging privatization are mainly the IMF, the World Bank, and the USAID.
Secondly, it is considered to be a response to the political interests of the business classes, foreign and domestic, who put claims on the state and seek relief from obligations to the public. Businessmen understand both that achieving their economic interests requires political action and that, by their location and wealth, they enjoy considerable leverage. Finally, business classes seek to dominate the state with a view to affect the distribution of national income in their own favor at the expense of the masses. A variant on this last point is that the poor are bound to become poorer in a tree-market economy because the increasing wealth of the few and the pairing of the economy to advanced industrial nations contributes to inflation and the lowering purchasing capacity of the poor. Cognizant of this argument, political leaders fear that privatization and rapid liberalization of the economy may lead to political turmoil, a turmoil which could undermine their regimes.
Recommendations :
When the actual privatization schemes within NIOC (National Iran Oil Company) are implemented, the private sector will look to both internal and external sources to fund the acquisition of the shares. Generally, we should expect domestic deposits to absorb most of the financing burden. This is another reason why the process should be a gradual one; otherwise the reduction in deposits could force banks to curtail lending and may lead to a credit crunch. While the aim is to bring larger private sector participation, a rush to privatization without careful planning could end up disrupting private sector activities.
There are companies where the government has sold part of its share holdings without disturbing the stock market. Successful examples in public and private partnership include the selling of government shares in industrial, electricity, petrochemical, agriculture. Cement and services companies. As most of these companies still operate in a monopolistic or semi-monopolistic setting, and as they are the only providers of the goods and/or services they offer. Clear and efficient regulations of their behavior need to be in place before they can become candidates for privatization. Some of them need to be reorganized and nursed to profitability before they are floated in the stock market. Airlines, NIOC helicopter services. Tanker companies (NITC), telecommunications. Public transport companies and port services are among the grouping which will need re-organization.
While one can not generalize, some of the affiliated companies of NIOC are pricing their national assets and labor out of the private sector reach, thus weakening the relationship between productivity and wages. Over protection of local labor has given the private sector a disincentive to hire locals, an issue that needs to be addressed Furthermore, over pricing the worth of the affiliated companies discourages serious bidders from participating in the privatization of those entities.
Finally, it should be noted that privatization does not necessarily mean the total transfer of ownership from the government to the private sector. Many of the government's concerns may be partially addressed by retaining a minority government ownership, as well as instituting efficient regulation. Partial government ownership should be transitional and it should not convey the notion that the government is guaranteeing private investment.
For privatization to work in general and specifically to make privatization work in the Oil and Gas sectors, the Iranian government must be able to analyze complex policy issues, make legal changes to the existing laws, choose among alternative privatization methods (if a home grown model or template is not yet available), and complete privatization deals with transparency. Privatization is more skill and information intensive than other economic reforms. While prices, tariffs, or interest rates can be deregulated relatively easily, the expertise needed for government involvement in privatization can not be achieved without significant study and preparation. The choice of public enterprises to be privatized is not only politically controversial but requires sophisticated technical analysis, as do financial restructuring, valuation, and the design of regulatory systems.
Reza Molavi is a fellow at Durham University’s IMEIS (in statute of Middle Eastern and Islamic Studies)
vendredi, juillet 16, 2004
The Aspect of Natural Gas industry in Iran
Oil Industry Equipment, Monthly Magazine, Jul. 2004, Page 33-38
The oil & gas reservoir in Iran, have been estimated to be 270 b.b. of crude oil in 1381 (2003).37% of which is allocated to crude oil and 63% to natural gas.
At the time being. Iran has 26.6 T/M3 natural gas a bout 52% of which is in offshore zones and 48% in onshore. lran natural resources have mostly been located in southern parts of the country and in adjacent of Persian Gulf.
Production of natural gas, as a response to local demand or for export is mainly produced from independent gas resources and associated gas produced from common oil and gas resources are mainly used to inject in oil zones.
Utilizing relative advantages of natural gas to maintain local energy demand as well as expansion of international natural gas exchanges in the wake of promotion of Iran stand in international markets are of strategic objectives of gas industry in the future.
Heading the trend of consumption of natural gas in Iran. The share of natural gas in consumption energy basket has advanced from 26% in 1370 (199 I) to 46% in 1380 (2001) and the share of oil production in the same period has been diminished from 64% to 47% in lieu.
Natural gas consumption growth in Iran during last decade has always preceded international consumption growth.
Natural gas consumption in Iran during the decade 1370-80 has enjoyed a medium annual growth of 12% whereas the annual growth of global consumption in the same period has only been. 1.8% vast attempts has taken place to develop gas transmission in the wake of realizing the policy of substitution of natural gas with other energy carriers. Iran National Gas Company (N.I.G.C.) has undertaken maintaining this objective.
Peculiarities of gas transmission system is affected from geographical particular peculiarities of oil and gas zones. Thus, Iran enjoys a vast connected gas transmission system. Developing this system in the wake of realizing the objective of substitution of natural gas with the basket of energy carries to maintion security in presenting energy, is strongly needed in the future programs.
Natural Gas Transmission System
Gas transmission system consists of high pressure transmission lines and booster pump stations which has had a remarkable increase during the past decades, so that, transmission lines has reached 15300 km at the end of 1380 with medium annual growth rate of 8.2% Iran, at the time being, has three main high pressure all-over lines (IGAT I, II & III) and establishing of the 4th & the 5th all-over line is under construction, meanwhile, studies for establishing the 6th all-over line has been started.
Furthermore, in the north-east and the north-west parts of the country two high pressure gas line, SarakhsNeka-Rasht with 36" & 30" diameter and also Azarbaijan gas transmission lines with 48" & 30" diameter has beet established to transfer gas for the mentioned districts.
Establishment of 5000 km new high pressure gas line has been predicted in the third development plan (1379-83) (2000-2005), thus, upon realizing such plan, the total gas transmission lines in Iran will reach 18300km.
Some of transmission line projects in the third development plan are as follow:
Establishing the third 56" all-over transmission line for 870 km. Establishing the fourth 56" all-over transmission line for 815 km.
Establishing the fifth 56" all-over transmission line for 500 km. Establishing the Azarbaijan second 48" transmission line for 440 km.
Establishing the sarakhs-mashad 36" transmission line for 145 km.
Design, provision & establishing 30 booster pump stations with total power of 2400 hp.
Natural Gas Distribution System
Natural gas distribution system in Iran has noticeably expanded during the last decade (1370-80) (19922002). Natural gas ramification has reached to 69000 km at the end of 1380 having the medium annual growth of 10.3% Installed gas branches has enjoyed a medium annual growth of 10.4% and has fetched over 3.72 m branches at the end of 1380.
Gas distribution system in Iran has covered 392 cities and 416 villages at the end of 1380 and at the same time the number of industrial consumers has reached 3500 units and the number of ramified industrial estates has reached 30 in this period, 7.4 m houses (equivalent to 32m. persons) have utilized natural gas.
Transferring gas to power plants has always been a major policy in energy section and, at the time being, 36 power plants are covered by gas transfer system.
Buyback Plan in Gas Industry
Based on sanctions of Islamic assembly in 1377, utilizing buy-back facilities to expedite expansion of gas transmission operation (1 st phase) was started. Increasing 44m/m3 refining daily cpacity, establishing over 2000 km of natural gas high pressure, establishing 6 booster pump stations with total capacity of376000 hp, installing 1.1 m residential branches (approx. 2m houses), transferring gas to 1800 industrial units are of the important objectives defined in this project.
Realizing this project and substituting natural gas in energy consumption basket. In adition to crating new jobs in different sectors, has annually saved about $1.3b. and with complete realization of the project, 2 m house have been covered by gas transfer system.
The achievements of the project has been as follow: Augmentation of 1.5 m new subscribers to gas trans for system Augmentation of 2m gas fuel houses (equivalent ot 10m persons).
Augmentation of natural gas annual consumption to 20 b/m3 (consisting of 8.2b/m' in commercial residential section, 8.6b/m3 in industry section and 4.2b/m3 in power plant section.
Following success in the first project of gas transfer through buy-back The second phase of the project was evaluated in 1380 and was approved by economy council. Based on programs, the project will be accomplished during 2002-2006. The main activities of gas transferring in this project will be as follow:
Augmentation of gas refining daily capacity to 50m/m3
Establishing about 4500 km of high pressure transmission line increasing new capacity for booster bump stations to 1.1 m/hp.
Natural gas consumption in Iran will be augmentated to 25b/m3 upon completion of the second phase of gas transferring through buy-back (30% in power plant section, 40% in industry section and 30% in residential commercial section).
Noticeable technical and operational capabilities of Iranian experts to accomplish several gas transferring projects particularly buy-back projects are of particular peculiarities of Iran natural gas industry. It has affected the operation id addition to affecting the project economy.
Specification of the 4th All-Over Line
The 4th all-over, transmission line with diameter of 56" has been established to transfer 50m/m2 per day, of refined gas in Asalooyeh refinery and 60m/m3 per day, of refined gas in Parsian refinery. The line starts at Asalooyeh refinery and is extended for 815 km through Persian refinery/Khonj/Jahrom/Sarvestan/Abadan and Montazery power plant in Isfahan. Operational pressure on the 4th line in 1305 psi. and transferring 11 Om/m3 of gas as a final result necessitates establishing 7 or 8 booster pump stations.
Making use of the 4th line is necessary in 1383 and in this regard, designing the line was started at 1379 and the layout of the first phase of the line (from Asalooyeh to station No.4 in Sarvestan for 396 km) was prepared in 1380, the completion of which has been started. Also the lay-out of the second phase (from Sarvestan to the end of line for 450 k) is in hand and will be completed in the fourth quarter of the current year.
Offering natural gas will be augmentated for IIOm/m3 per day (40b/mJ/per year) upon establishing the 4th transmission line and related booster pump stations. Substitution of such amount of natural gas in consumption energy basket during the next year mainly by reducing oil products, will have great economical and environmental impacts.
Studies show that equivalent to 257 m/barrel of crude oil products can be substituted by natural gas.
And it will take place by non-importing oil products and making ground for exporting crude oil or oil products which will make a huge amount of profits to strengthen the economy.
Economical profits made by substituting natural gas, has been estimated at $ 1747b. per year, heeding the medium value of the basket establishing the 4th line and the other expenses relating to offering natural gas ($343m. in residential and commercial section, $ 650 m. in industry section and $ 754 m. in power plant section). In addition to that, accomplishing the project and increasing substitution speet of gas with other energy carriers, spread of environmental pollutants made by energy combustion i.e.12.7m/ton (Co2) and 90,600 tons (Nox) can be averted.
Introduction to N.I.G.C Installation and Industrial Complexes
Existence of oil & gas sources in related fields and necessity of collection, refining, producing, transferring, delivering and distributing gas to consuming centers, which are kilometers far from production sources. Spread of gas transfer network, exploitation and running huge gas installation, has caused N.LG.C. to establish such installations in different places of the country. These centers and installations the major part of which consists of collecting centers, refineries, separating centers and dehumidification, pipeline, workshops and maintenance centers, booster pump stations, corrosion protection, valves, pressure reduction centers, telecommunication stations, measuring and control, input stations, reservation and loading centers for liquefied gas, meter & regulator plants, residential and industrial estates and administration complexes are located in operation districts, for more acquaintance to some of which are briefly pointed:
Hashemi Nejad Gas Refinery (Khangiran)
Hashemi Nejad gas refinery being considered as one of the greatest gas refineries, is located in 35km from Sarakhs and l65km from Mashad in the north-east of Khorasan province. The area of the refinery is 100 acres and construction operation of the refinery was started in 1356 and was put on stream on 1362 aiming at maintaining gas and fuel for the greatest power plant in the country i.e.Neka power plant as will as gas transfer to Khorasan & Mazandaran provinces. The refinery which has been designed to refine sour gas of Khangiran independent gas resources, has been formed by 3 gas refinery units with daily capacity of 21 m/m3 (expandable to 5 units) which is equivalent to thermic value of 140,000 barrel of oil as well as 2 sulphur recycling units (expandable to 3 units) with daily capacity of 1300m/t also fixing units of gas liquid and a sour water reduction and other collateral installation. In addition to the gas obtained from mentioned sources, the sweet gas from Shoorijeh field reservoirs are transferred to consumption circuit through a pipeline to Mashad after dehumidification the sulphur obtainet from processing gas is used in local and foreign markets.
The Gas extracted from sour gas well in the region, are delivered to refinery after control, collection and primary preparation through a pipeline, sweet gas extracted from Shoorijeh and Gonbadli are injected to the pipeline after dehumidification and passing through dehumidification tower and getting dried by special process.
The water required for refinery and Mohajer estate is maintaioned through 4 deep water wella and a treatment plant with capacity of 580 m3fh. Electricity for refinery and Mohajer estate is maintained by 4 generators the motor of 3 of which is gas turbine and a steam turbine and the capacity for each unit is 7500 k.w.h (total equivalent to 30m.w). A diesel generator with of 1.5m. w'. has been installed for emergencies. Required steam for refinery is produced by 4 boilers producing 3600t/h high pressure steam and 2 boilers producing 150t/h medium pressure steam.
Laboratory in refinery is responsible for controlling impurities as well as accurate supervision over quality and quantity of gas and consumable material and the persons in charge of control room are controlling the routine process of operation in the refinery.
Hormozgan Operational Center
Separation and dehumidification installations in Queshm island was put on stream on 1357 aiming at drying sweet gas extracted form Gavarin field to supply gas for Bandar abbas power plants also to fix and obtain gas liquids for local consumption or export purposes via laft harbour. Mentioned installations can prepare 2m/m] of gas daily and deliver it to the pipeline to be transferred to Bandar abbas power plant. Two similar install lations in 2 phases the operation of the first phase of which was terminated in 1365 with 4 refining and dehumidification, units has been installed in Sarakhoon located at 25 km in north-east part of Bandar abbas. This installation has been installed to refine Sarkhoon field gas, supply and completion of gas for Bandar abbas power plant, transferring gas to Sarcheshmeh copper complex, Kerman province. All cities in the route and Kerman power plant as well as obtaining 6000 drums of gas liquids per day for consumption. The second phase of Sarkhoon refinery the construction operation of which is in hand will double the capacity of gas delivered into pipeline as well as obtained gas liquids. Rry complex, also water and electricity supply installation Queshm Camp, pipeline maintenance center, telecommunication stations as well as Fajr administration - residential estate with about 200 residential units are all located in Hormozgan operational district.
Refining
Natural gas refining & dehumidification capacity has reached 211m.m] in 1380 (2001) enjoying a 9% growth during the past decade. Heeding noticeable concentration of gas fields in southern part of the country, refining and dehumidification possibilities have mainly been located in this area. Bid Boland Refinery with daily capacity of 22.5.m.m3, Fajr Refinery with daily capacity of 110m/m3, Sarkhoon Refinery with daily capacity of 7.1 m/m3 for dehumidification in southern districts, and Hashemi Jejad Refinery with daily capacity of 44.5 m/m3 located in North-eastern district of Iran are considered as the most important refining installation of the country.
Based on forecasts in 5 years development plan, capacity of refining and dehumidification of refieries has reached 345 m/m3 per day with medium annual growth of 18%, herebelow are the best of some refining plans to be accomplished during the third 5 years development plan.
Establishing Asalooyeh Refinery with daily capacity of 75m.m3 for explotation of 1st, 2nd and 3rd phase of southern pars, out of which, exploitation of 2nd and 3rd phase is on stream and for the 1 st phase will be startedup before the end of the current year.
Establishing another refinery in Asalooyeh with daily capacity of 50 m/m3 for ixploitation of 4th and 5th phase of southern pars which in hand and will be put on stream in 1384 (2006).
Establishing the 2nd Bid Boland refinery with daily capacity of 56 m.m3 to refine gas exploited from pazanan, Bibi Hakimeh & Gachsaran fields. This project will be put on stream in 1384 (2006).
Establishing (first phase) parsian Refinery with daily capacity of 55 m.m3 to be put on stream in 1384 (2006).
Establishing (first part of the 2nd phase) parsian Refinery with daily capacity of 21 m.m3 to be put on stream in 1384 (2006).
Establishing (2nd part of the 2nd phase) parsian Refinery with daily capacity of 20 m.m3 to be put on stream during the 4th 5 years development plan.
Establishing l am Refinery with daily capacity of 6.8 m.m3 to exploit Tang Bijar gas resources. These refinery will be put on stream in 1381 (2003).
Establishing southern Gashou Refinery with daily capacity of 14 m.m3 which is under study.
N.I.G.C. Financing Projects
Establishing Bid Boland-2 refinery and the 4th all over gas transmission line was suggested by economy council in the form of sanctioned bill. According to 3rd part of L stanza of N.B.29 relation the 1379 budget law and 1 st part of, J stanza article no, 85 relating to the third cultural, social, economical and development plan and the law of making use of technical, engineering, manufacturing and industrial capabilities in execution of projects and providing facilities to export services.
Establishing Bid Boland-2 refinery and the 4th all-over transmission line was sanctioned with the budget of max.$ 1844 m net or $ 2777.1 m gross (including taskmaster,s profits and other expenses) through financing. According to predictions, those two projects will be accomplished in five years (1380-84), and the facilities received will be amortized in 8 years by selling products including liquefied gas products, liquid gas, ethane, natural petrol (except natural gas) or the texts mentioned in A stanza of article no 120 relating to the third 5 years cultural, social, economical and development plan.
Bidboland-2 refinery will be established for sweetening and processing about 56m/m3 of gas per day to obtain ethane and liquids with more gravity than pazanan gas and also associated gas in Gachsaran and Bibihakimeh gas fields. This installations, in addition to producing sweet gas, will also produce 3.83 m tons of C2+ liquefied products per year, out of which the produced ethane in used to feed Arvand petrochemical plant (8th Arvand), and the butane and natural petrol is exported abroad via mahshahr harbaors. The income obtatine through sales of aim products will fetch $ 500 m. per year.
Timetable of project accomplishment
According to timetable and in case of maintaining required financial credits the first sweetening unit will be statted up in the second half of 1384 upon signing contract and the remaining units will be started up every two months.
Project of Establishing 5th All-Over Line (Asa looyeh-Aghajari)
Foreword
Establishing the 5th all-over line to develop phases 6,7, and 8 of southern pars has been defined in he framework of the sanctioned bill No. 34/1/744 dated Mar/15/2000 generalities of the project consists of 30 developing wells, establishing sub-sea pipeline to transfer produced gas to onshore installation. Refining gas including gas separation from liquids, dehumidification, fixing gas liquids, establishing 504 km 56" pipe line for transferring gas from Aghajari for injection to oil zones.
The project was sanctioned for $ 5469 m. gross budjet (consisting of profits for taskmaster and other expenses) and net budget of$ 2870 m. based on the part 1-3 of L stanza NB. 29 relation to 1378 budjet law emphasizing on observing the law of utilizing the maximum technical, engineering, manufacturing and industrial capabilities to execute projects and facilitating exporting services.
According to the bill sanctioned by oil board of directors dated Jan/14/2002 execution of AsalooyehAghajari 56" pipeline along with booster pump stations and related telecommunication system was ceded to N.LG.G on behalf of N.LO.C.
Project Peculiatities
The 5th all-over gas transmission line has been established to transfer 100 m/m3 per day (3500 m/f3) of sour gas produced in phase 6,7 and 8 installations of southern pars in Asalooyeh also Salman oil field to Aghajari gas installation to be injected to the field wells with 56" diameter. The line starts in Asalooyeh and will be extended for 504 km through Bandar Genaveh-Aghajari.
Designing pressure for Asalooyeh-Aghajari has been foreseen to be 100 bar and 4 booster pump stations with power of 284000 k.w is required for the whole route.
Establishing the aforementioned pipeline has a high grade of urgency and should be put on stream until 1383, therefore designing the line has been started in 1380 and various stages of design, line execution, telecommunication system and booster pump stations are accomplished to the attached timetable.
Bidboland Gas Refinery
Bidboland gas refinery is located in km-22 west of Behbahan and km-40 north of Aghajari in Khouzestan proVInce.
Designing the refinery has initially been for refining sour gas in Aghajari field and export it abroad, and primary construction of the design consisting of5 refining units (with 240 mm scf/d for each unit and expandable to 9 units) was started in 1374 and was put on stream on 1349 Upon existence of Ahwaz and Maroon oil field and dispatching sweet gas from these field to transfer to all-over pipeline via Bidboland booster pump the export volume has been incrased and installation of next units wee abolished.
Immediately, dehumidification unit was put in service to adjust dew-point of Maroon & Ahwas gas. Aghajari field sour gas associated with 3% total acid gas are delivered trom 100,200,300 N.G.L. plant of N.LO.C. to Aghajari martyrs booster pump station (Mandanizadeh, Makvandifar & Yousefi) and it is transferred to refinery through 40" pipeline.
Sour gas are sweetened in contact towers of refining units by monoethanolamine 15% (M.E.A.). or diethanolamine 30% and in 38 oC temperature and after washing by distilled water, it is dehumidified by alumina (activated aluminum oxide) or silica-gel in dehumidification towers, Finally, sweetend and dried gas is transferred to all-over line via Maroon-Ahwaz sweet gas line and martyr kavehpishe booster pump station (Bidboland station). Design of refinery was carried out by Pritchard company and construction of the building was accomplished by coslain & press under supervision of1.M.E.G.
Upon existence of Ahwaz & Maroon sweet gas fields and commutation of sweet gas in these fields with sour gas percentage of associated acid gas in fluctuationg between 0.3%-1.2% at the time being.
Development Plan
Bidboland-2 refinery
Processing Pazanan sour gas is carried out by four sweetening units with capacity of 500 m/D per day for each unit (more than 14 m/m3 per day) in Bidboland-2 refinery in this plan, two sulphur recycling units and ethane and higher slice obtaining units with capacity of 3 m/tons per year and collateral services will completely be established. Exploitation of the plan has been programmed to be on 1384.
New refinery unit
Establishing a new refining unit with normal capacity of 7m/m3 per day in Bidboland refinery is in agenda.
First stage of the plan
Hashemi Nejad gas refinery aiming at exploitation of Khangiran Sarakhs gas reservoirs supplies 15% of consuming gas in the country for about 700,000 subscribers making use of 3 refining units with total daily capacity of25 m/m3.
The gas feeding the refinery contains 10% of acid gas consisting of 5 and 3% H2S as well as 5 and 6% CO and is considered as one of the most perilous gas reservoirs in the world. It is mentionable that since 1379, the operation of refinery is carried out in the framework of Hashemi Nejad refining co. as one of the affiliated companies of N.I.G.C.
Second stage of plan
N.1.G.C. designed and established two refinery units and a sulphur recycling unit in 1377 aiming at augmentation of exploitation network-establishing these units has increased the daily capacity of the refinery for 42 m/m3 which is equivalent to 22% of total consumption in the country. Credit used for this project has been $ 83m, in hard currency and 240 b/Rls.
Valiasr Gas Refinery
Valiasr huge gas refinery is located in 300 km south east of Bandar Boushehr and 200 km south of Shiraz adjacent to Khass city and 70 km of Banabar Kangan in mountainous district ofNar & Kangan.
The area of the refinery apart from surroundings is 70 acres the construction operation of which was started aiming at exploitation of Nar & Kangan independent gas fields, completion, and supplying required gas for local consumption and exporting gas liquid via Bandar Tahery, The first phase of the refinery which has 4 similar refining units and adjustment of dew point was put on stream on 1368 with daily capacity of 38 m/m3 equal to thermal value of about 290,000 barrel of oil and the feed of which is supplied from Nar field sour gas.
The Second phase of the refinery established to refine Kangan field gas. And the construction operation of which is in hand, will increase the final daily capacity to 80 m/m3 equivalent to thermic value of 600,000 barrels of oil, which will have an effective role in remedying deficiency of energy, economical and social objectives.
Sarkhoon Gas Refinery
This refinery Located at 25 km north-east of Bandar abbas And 2 phases of each has been completed And started up, has a daily capacity of producing 14.4 m/m' standard gas, 1200 barrels of fixed gas liquid and 90 tons of liquid field gas.
Exploitation of the first phase has taken place in 1365 and of the second phase in 1375.
Natural gas required for this installations are supplied by 13 wells in Sarkhoon field which are transferred for consumption after segregation and dehumidification. Accomplishing the main process, in designing of which the latest technology has been used, can apply by glycol recycling, refrigerating by propane, liquid fixing and LPG production units. Generating electricity in the installation takes place bye gas turbines which have a total capacity of 7.2 m.w.
Produced natural gas, in addition to supplying Bandar Abbas power plant, Bandar Abbas oil refinery and Hormozgan province factories, it also supplies gas for industrial and residential complexes, like Sarcheshmeh copper complex, Sirjan, Kerman and Rafsanjan cities.
Gas liquids fixed in this refinery is transferred to Bandar Abbas oil rafinery to feed some parts of installation Liquified gas as a new product in this refinery, is producedin gas liquid fixing unit and is delivered to oil products distribution company.
Natural gas consumption growth in Iran during last decade has always preceded international consumption growth. Natural gas consumption in Iran during the decade 1370-80 has enjoyed a medium annual growth of 12% whereas the annual growth of global consumption in the same period has only been. 1.8% vast attempts has taken place to develop gas transmission in the wake of realizing the policy of substitution of natural gas with other energy carriers. Iran National Gas Company (N.I.G.C.) has undertaken maintaining this objective.
The oil & gas reservoir in Iran, have been estimated to be 270 b.b. of crude oil in 1381 (2003).37% of which is allocated to crude oil and 63% to natural gas.
At the time being. Iran has 26.6 T/M3 natural gas a bout 52% of which is in offshore zones and 48% in onshore. lran natural resources have mostly been located in southern parts of the country and in adjacent of Persian Gulf.
Production of natural gas, as a response to local demand or for export is mainly produced from independent gas resources and associated gas produced from common oil and gas resources are mainly used to inject in oil zones.
Utilizing relative advantages of natural gas to maintain local energy demand as well as expansion of international natural gas exchanges in the wake of promotion of Iran stand in international markets are of strategic objectives of gas industry in the future.
Heading the trend of consumption of natural gas in Iran. The share of natural gas in consumption energy basket has advanced from 26% in 1370 (199 I) to 46% in 1380 (2001) and the share of oil production in the same period has been diminished from 64% to 47% in lieu.
Natural gas consumption growth in Iran during last decade has always preceded international consumption growth.
Natural gas consumption in Iran during the decade 1370-80 has enjoyed a medium annual growth of 12% whereas the annual growth of global consumption in the same period has only been. 1.8% vast attempts has taken place to develop gas transmission in the wake of realizing the policy of substitution of natural gas with other energy carriers. Iran National Gas Company (N.I.G.C.) has undertaken maintaining this objective.
Peculiarities of gas transmission system is affected from geographical particular peculiarities of oil and gas zones. Thus, Iran enjoys a vast connected gas transmission system. Developing this system in the wake of realizing the objective of substitution of natural gas with the basket of energy carries to maintion security in presenting energy, is strongly needed in the future programs.
Natural Gas Transmission System
Gas transmission system consists of high pressure transmission lines and booster pump stations which has had a remarkable increase during the past decades, so that, transmission lines has reached 15300 km at the end of 1380 with medium annual growth rate of 8.2% Iran, at the time being, has three main high pressure all-over lines (IGAT I, II & III) and establishing of the 4th & the 5th all-over line is under construction, meanwhile, studies for establishing the 6th all-over line has been started.
Furthermore, in the north-east and the north-west parts of the country two high pressure gas line, SarakhsNeka-Rasht with 36" & 30" diameter and also Azarbaijan gas transmission lines with 48" & 30" diameter has beet established to transfer gas for the mentioned districts.
Establishment of 5000 km new high pressure gas line has been predicted in the third development plan (1379-83) (2000-2005), thus, upon realizing such plan, the total gas transmission lines in Iran will reach 18300km.
Some of transmission line projects in the third development plan are as follow:
Establishing the third 56" all-over transmission line for 870 km. Establishing the fourth 56" all-over transmission line for 815 km.
Establishing the fifth 56" all-over transmission line for 500 km. Establishing the Azarbaijan second 48" transmission line for 440 km.
Establishing the sarakhs-mashad 36" transmission line for 145 km.
Design, provision & establishing 30 booster pump stations with total power of 2400 hp.
Natural Gas Distribution System
Natural gas distribution system in Iran has noticeably expanded during the last decade (1370-80) (19922002). Natural gas ramification has reached to 69000 km at the end of 1380 having the medium annual growth of 10.3% Installed gas branches has enjoyed a medium annual growth of 10.4% and has fetched over 3.72 m branches at the end of 1380.
Gas distribution system in Iran has covered 392 cities and 416 villages at the end of 1380 and at the same time the number of industrial consumers has reached 3500 units and the number of ramified industrial estates has reached 30 in this period, 7.4 m houses (equivalent to 32m. persons) have utilized natural gas.
Transferring gas to power plants has always been a major policy in energy section and, at the time being, 36 power plants are covered by gas transfer system.
Buyback Plan in Gas Industry
Based on sanctions of Islamic assembly in 1377, utilizing buy-back facilities to expedite expansion of gas transmission operation (1 st phase) was started. Increasing 44m/m3 refining daily cpacity, establishing over 2000 km of natural gas high pressure, establishing 6 booster pump stations with total capacity of376000 hp, installing 1.1 m residential branches (approx. 2m houses), transferring gas to 1800 industrial units are of the important objectives defined in this project.
Realizing this project and substituting natural gas in energy consumption basket. In adition to crating new jobs in different sectors, has annually saved about $1.3b. and with complete realization of the project, 2 m house have been covered by gas transfer system.
The achievements of the project has been as follow: Augmentation of 1.5 m new subscribers to gas trans for system Augmentation of 2m gas fuel houses (equivalent ot 10m persons).
Augmentation of natural gas annual consumption to 20 b/m3 (consisting of 8.2b/m' in commercial residential section, 8.6b/m3 in industry section and 4.2b/m3 in power plant section.
Following success in the first project of gas transfer through buy-back The second phase of the project was evaluated in 1380 and was approved by economy council. Based on programs, the project will be accomplished during 2002-2006. The main activities of gas transferring in this project will be as follow:
Augmentation of gas refining daily capacity to 50m/m3
Establishing about 4500 km of high pressure transmission line increasing new capacity for booster bump stations to 1.1 m/hp.
Natural gas consumption in Iran will be augmentated to 25b/m3 upon completion of the second phase of gas transferring through buy-back (30% in power plant section, 40% in industry section and 30% in residential commercial section).
Noticeable technical and operational capabilities of Iranian experts to accomplish several gas transferring projects particularly buy-back projects are of particular peculiarities of Iran natural gas industry. It has affected the operation id addition to affecting the project economy.
Specification of the 4th All-Over Line
The 4th all-over, transmission line with diameter of 56" has been established to transfer 50m/m2 per day, of refined gas in Asalooyeh refinery and 60m/m3 per day, of refined gas in Parsian refinery. The line starts at Asalooyeh refinery and is extended for 815 km through Persian refinery/Khonj/Jahrom/Sarvestan/Abadan and Montazery power plant in Isfahan. Operational pressure on the 4th line in 1305 psi. and transferring 11 Om/m3 of gas as a final result necessitates establishing 7 or 8 booster pump stations.
Making use of the 4th line is necessary in 1383 and in this regard, designing the line was started at 1379 and the layout of the first phase of the line (from Asalooyeh to station No.4 in Sarvestan for 396 km) was prepared in 1380, the completion of which has been started. Also the lay-out of the second phase (from Sarvestan to the end of line for 450 k) is in hand and will be completed in the fourth quarter of the current year.
Offering natural gas will be augmentated for IIOm/m3 per day (40b/mJ/per year) upon establishing the 4th transmission line and related booster pump stations. Substitution of such amount of natural gas in consumption energy basket during the next year mainly by reducing oil products, will have great economical and environmental impacts.
Studies show that equivalent to 257 m/barrel of crude oil products can be substituted by natural gas.
And it will take place by non-importing oil products and making ground for exporting crude oil or oil products which will make a huge amount of profits to strengthen the economy.
Economical profits made by substituting natural gas, has been estimated at $ 1747b. per year, heeding the medium value of the basket establishing the 4th line and the other expenses relating to offering natural gas ($343m. in residential and commercial section, $ 650 m. in industry section and $ 754 m. in power plant section). In addition to that, accomplishing the project and increasing substitution speet of gas with other energy carriers, spread of environmental pollutants made by energy combustion i.e.12.7m/ton (Co2) and 90,600 tons (Nox) can be averted.
Introduction to N.I.G.C Installation and Industrial Complexes
Existence of oil & gas sources in related fields and necessity of collection, refining, producing, transferring, delivering and distributing gas to consuming centers, which are kilometers far from production sources. Spread of gas transfer network, exploitation and running huge gas installation, has caused N.LG.C. to establish such installations in different places of the country. These centers and installations the major part of which consists of collecting centers, refineries, separating centers and dehumidification, pipeline, workshops and maintenance centers, booster pump stations, corrosion protection, valves, pressure reduction centers, telecommunication stations, measuring and control, input stations, reservation and loading centers for liquefied gas, meter & regulator plants, residential and industrial estates and administration complexes are located in operation districts, for more acquaintance to some of which are briefly pointed:
Hashemi Nejad Gas Refinery (Khangiran)
Hashemi Nejad gas refinery being considered as one of the greatest gas refineries, is located in 35km from Sarakhs and l65km from Mashad in the north-east of Khorasan province. The area of the refinery is 100 acres and construction operation of the refinery was started in 1356 and was put on stream on 1362 aiming at maintaining gas and fuel for the greatest power plant in the country i.e.Neka power plant as will as gas transfer to Khorasan & Mazandaran provinces. The refinery which has been designed to refine sour gas of Khangiran independent gas resources, has been formed by 3 gas refinery units with daily capacity of 21 m/m3 (expandable to 5 units) which is equivalent to thermic value of 140,000 barrel of oil as well as 2 sulphur recycling units (expandable to 3 units) with daily capacity of 1300m/t also fixing units of gas liquid and a sour water reduction and other collateral installation. In addition to the gas obtained from mentioned sources, the sweet gas from Shoorijeh field reservoirs are transferred to consumption circuit through a pipeline to Mashad after dehumidification the sulphur obtainet from processing gas is used in local and foreign markets.
The Gas extracted from sour gas well in the region, are delivered to refinery after control, collection and primary preparation through a pipeline, sweet gas extracted from Shoorijeh and Gonbadli are injected to the pipeline after dehumidification and passing through dehumidification tower and getting dried by special process.
The water required for refinery and Mohajer estate is maintaioned through 4 deep water wella and a treatment plant with capacity of 580 m3fh. Electricity for refinery and Mohajer estate is maintained by 4 generators the motor of 3 of which is gas turbine and a steam turbine and the capacity for each unit is 7500 k.w.h (total equivalent to 30m.w). A diesel generator with of 1.5m. w'. has been installed for emergencies. Required steam for refinery is produced by 4 boilers producing 3600t/h high pressure steam and 2 boilers producing 150t/h medium pressure steam.
Laboratory in refinery is responsible for controlling impurities as well as accurate supervision over quality and quantity of gas and consumable material and the persons in charge of control room are controlling the routine process of operation in the refinery.
Hormozgan Operational Center
Separation and dehumidification installations in Queshm island was put on stream on 1357 aiming at drying sweet gas extracted form Gavarin field to supply gas for Bandar abbas power plants also to fix and obtain gas liquids for local consumption or export purposes via laft harbour. Mentioned installations can prepare 2m/m] of gas daily and deliver it to the pipeline to be transferred to Bandar abbas power plant. Two similar install lations in 2 phases the operation of the first phase of which was terminated in 1365 with 4 refining and dehumidification, units has been installed in Sarakhoon located at 25 km in north-east part of Bandar abbas. This installation has been installed to refine Sarkhoon field gas, supply and completion of gas for Bandar abbas power plant, transferring gas to Sarcheshmeh copper complex, Kerman province. All cities in the route and Kerman power plant as well as obtaining 6000 drums of gas liquids per day for consumption. The second phase of Sarkhoon refinery the construction operation of which is in hand will double the capacity of gas delivered into pipeline as well as obtained gas liquids. Rry complex, also water and electricity supply installation Queshm Camp, pipeline maintenance center, telecommunication stations as well as Fajr administration - residential estate with about 200 residential units are all located in Hormozgan operational district.
Refining
Natural gas refining & dehumidification capacity has reached 211m.m] in 1380 (2001) enjoying a 9% growth during the past decade. Heeding noticeable concentration of gas fields in southern part of the country, refining and dehumidification possibilities have mainly been located in this area. Bid Boland Refinery with daily capacity of 22.5.m.m3, Fajr Refinery with daily capacity of 110m/m3, Sarkhoon Refinery with daily capacity of 7.1 m/m3 for dehumidification in southern districts, and Hashemi Jejad Refinery with daily capacity of 44.5 m/m3 located in North-eastern district of Iran are considered as the most important refining installation of the country.
Based on forecasts in 5 years development plan, capacity of refining and dehumidification of refieries has reached 345 m/m3 per day with medium annual growth of 18%, herebelow are the best of some refining plans to be accomplished during the third 5 years development plan.
Establishing Asalooyeh Refinery with daily capacity of 75m.m3 for explotation of 1st, 2nd and 3rd phase of southern pars, out of which, exploitation of 2nd and 3rd phase is on stream and for the 1 st phase will be startedup before the end of the current year.
Establishing another refinery in Asalooyeh with daily capacity of 50 m/m3 for ixploitation of 4th and 5th phase of southern pars which in hand and will be put on stream in 1384 (2006).
Establishing the 2nd Bid Boland refinery with daily capacity of 56 m.m3 to refine gas exploited from pazanan, Bibi Hakimeh & Gachsaran fields. This project will be put on stream in 1384 (2006).
Establishing (first phase) parsian Refinery with daily capacity of 55 m.m3 to be put on stream in 1384 (2006).
Establishing (first part of the 2nd phase) parsian Refinery with daily capacity of 21 m.m3 to be put on stream in 1384 (2006).
Establishing (2nd part of the 2nd phase) parsian Refinery with daily capacity of 20 m.m3 to be put on stream during the 4th 5 years development plan.
Establishing l am Refinery with daily capacity of 6.8 m.m3 to exploit Tang Bijar gas resources. These refinery will be put on stream in 1381 (2003).
Establishing southern Gashou Refinery with daily capacity of 14 m.m3 which is under study.
N.I.G.C. Financing Projects
Establishing Bid Boland-2 refinery and the 4th all over gas transmission line was suggested by economy council in the form of sanctioned bill. According to 3rd part of L stanza of N.B.29 relation the 1379 budget law and 1 st part of, J stanza article no, 85 relating to the third cultural, social, economical and development plan and the law of making use of technical, engineering, manufacturing and industrial capabilities in execution of projects and providing facilities to export services.
Establishing Bid Boland-2 refinery and the 4th all-over transmission line was sanctioned with the budget of max.$ 1844 m net or $ 2777.1 m gross (including taskmaster,s profits and other expenses) through financing. According to predictions, those two projects will be accomplished in five years (1380-84), and the facilities received will be amortized in 8 years by selling products including liquefied gas products, liquid gas, ethane, natural petrol (except natural gas) or the texts mentioned in A stanza of article no 120 relating to the third 5 years cultural, social, economical and development plan.
Bidboland-2 refinery will be established for sweetening and processing about 56m/m3 of gas per day to obtain ethane and liquids with more gravity than pazanan gas and also associated gas in Gachsaran and Bibihakimeh gas fields. This installations, in addition to producing sweet gas, will also produce 3.83 m tons of C2+ liquefied products per year, out of which the produced ethane in used to feed Arvand petrochemical plant (8th Arvand), and the butane and natural petrol is exported abroad via mahshahr harbaors. The income obtatine through sales of aim products will fetch $ 500 m. per year.
Timetable of project accomplishment
According to timetable and in case of maintaining required financial credits the first sweetening unit will be statted up in the second half of 1384 upon signing contract and the remaining units will be started up every two months.
Project of Establishing 5th All-Over Line (Asa looyeh-Aghajari)
Foreword
Establishing the 5th all-over line to develop phases 6,7, and 8 of southern pars has been defined in he framework of the sanctioned bill No. 34/1/744 dated Mar/15/2000 generalities of the project consists of 30 developing wells, establishing sub-sea pipeline to transfer produced gas to onshore installation. Refining gas including gas separation from liquids, dehumidification, fixing gas liquids, establishing 504 km 56" pipe line for transferring gas from Aghajari for injection to oil zones.
The project was sanctioned for $ 5469 m. gross budjet (consisting of profits for taskmaster and other expenses) and net budget of$ 2870 m. based on the part 1-3 of L stanza NB. 29 relation to 1378 budjet law emphasizing on observing the law of utilizing the maximum technical, engineering, manufacturing and industrial capabilities to execute projects and facilitating exporting services.
According to the bill sanctioned by oil board of directors dated Jan/14/2002 execution of AsalooyehAghajari 56" pipeline along with booster pump stations and related telecommunication system was ceded to N.LG.G on behalf of N.LO.C.
Project Peculiatities
The 5th all-over gas transmission line has been established to transfer 100 m/m3 per day (3500 m/f3) of sour gas produced in phase 6,7 and 8 installations of southern pars in Asalooyeh also Salman oil field to Aghajari gas installation to be injected to the field wells with 56" diameter. The line starts in Asalooyeh and will be extended for 504 km through Bandar Genaveh-Aghajari.
Designing pressure for Asalooyeh-Aghajari has been foreseen to be 100 bar and 4 booster pump stations with power of 284000 k.w is required for the whole route.
Establishing the aforementioned pipeline has a high grade of urgency and should be put on stream until 1383, therefore designing the line has been started in 1380 and various stages of design, line execution, telecommunication system and booster pump stations are accomplished to the attached timetable.
Bidboland Gas Refinery
Bidboland gas refinery is located in km-22 west of Behbahan and km-40 north of Aghajari in Khouzestan proVInce.
Designing the refinery has initially been for refining sour gas in Aghajari field and export it abroad, and primary construction of the design consisting of5 refining units (with 240 mm scf/d for each unit and expandable to 9 units) was started in 1374 and was put on stream on 1349 Upon existence of Ahwaz and Maroon oil field and dispatching sweet gas from these field to transfer to all-over pipeline via Bidboland booster pump the export volume has been incrased and installation of next units wee abolished.
Immediately, dehumidification unit was put in service to adjust dew-point of Maroon & Ahwas gas. Aghajari field sour gas associated with 3% total acid gas are delivered trom 100,200,300 N.G.L. plant of N.LO.C. to Aghajari martyrs booster pump station (Mandanizadeh, Makvandifar & Yousefi) and it is transferred to refinery through 40" pipeline.
Sour gas are sweetened in contact towers of refining units by monoethanolamine 15% (M.E.A.). or diethanolamine 30% and in 38 oC temperature and after washing by distilled water, it is dehumidified by alumina (activated aluminum oxide) or silica-gel in dehumidification towers, Finally, sweetend and dried gas is transferred to all-over line via Maroon-Ahwaz sweet gas line and martyr kavehpishe booster pump station (Bidboland station). Design of refinery was carried out by Pritchard company and construction of the building was accomplished by coslain & press under supervision of1.M.E.G.
Upon existence of Ahwaz & Maroon sweet gas fields and commutation of sweet gas in these fields with sour gas percentage of associated acid gas in fluctuationg between 0.3%-1.2% at the time being.
Development Plan
Bidboland-2 refinery
Processing Pazanan sour gas is carried out by four sweetening units with capacity of 500 m/D per day for each unit (more than 14 m/m3 per day) in Bidboland-2 refinery in this plan, two sulphur recycling units and ethane and higher slice obtaining units with capacity of 3 m/tons per year and collateral services will completely be established. Exploitation of the plan has been programmed to be on 1384.
New refinery unit
Establishing a new refining unit with normal capacity of 7m/m3 per day in Bidboland refinery is in agenda.
First stage of the plan
Hashemi Nejad gas refinery aiming at exploitation of Khangiran Sarakhs gas reservoirs supplies 15% of consuming gas in the country for about 700,000 subscribers making use of 3 refining units with total daily capacity of25 m/m3.
The gas feeding the refinery contains 10% of acid gas consisting of 5 and 3% H2S as well as 5 and 6% CO and is considered as one of the most perilous gas reservoirs in the world. It is mentionable that since 1379, the operation of refinery is carried out in the framework of Hashemi Nejad refining co. as one of the affiliated companies of N.I.G.C.
Second stage of plan
N.1.G.C. designed and established two refinery units and a sulphur recycling unit in 1377 aiming at augmentation of exploitation network-establishing these units has increased the daily capacity of the refinery for 42 m/m3 which is equivalent to 22% of total consumption in the country. Credit used for this project has been $ 83m, in hard currency and 240 b/Rls.
Valiasr Gas Refinery
Valiasr huge gas refinery is located in 300 km south east of Bandar Boushehr and 200 km south of Shiraz adjacent to Khass city and 70 km of Banabar Kangan in mountainous district ofNar & Kangan.
The area of the refinery apart from surroundings is 70 acres the construction operation of which was started aiming at exploitation of Nar & Kangan independent gas fields, completion, and supplying required gas for local consumption and exporting gas liquid via Bandar Tahery, The first phase of the refinery which has 4 similar refining units and adjustment of dew point was put on stream on 1368 with daily capacity of 38 m/m3 equal to thermal value of about 290,000 barrel of oil and the feed of which is supplied from Nar field sour gas.
The Second phase of the refinery established to refine Kangan field gas. And the construction operation of which is in hand, will increase the final daily capacity to 80 m/m3 equivalent to thermic value of 600,000 barrels of oil, which will have an effective role in remedying deficiency of energy, economical and social objectives.
Sarkhoon Gas Refinery
This refinery Located at 25 km north-east of Bandar abbas And 2 phases of each has been completed And started up, has a daily capacity of producing 14.4 m/m' standard gas, 1200 barrels of fixed gas liquid and 90 tons of liquid field gas.
Exploitation of the first phase has taken place in 1365 and of the second phase in 1375.
Natural gas required for this installations are supplied by 13 wells in Sarkhoon field which are transferred for consumption after segregation and dehumidification. Accomplishing the main process, in designing of which the latest technology has been used, can apply by glycol recycling, refrigerating by propane, liquid fixing and LPG production units. Generating electricity in the installation takes place bye gas turbines which have a total capacity of 7.2 m.w.
Produced natural gas, in addition to supplying Bandar Abbas power plant, Bandar Abbas oil refinery and Hormozgan province factories, it also supplies gas for industrial and residential complexes, like Sarcheshmeh copper complex, Sirjan, Kerman and Rafsanjan cities.
Gas liquids fixed in this refinery is transferred to Bandar Abbas oil rafinery to feed some parts of installation Liquified gas as a new product in this refinery, is producedin gas liquid fixing unit and is delivered to oil products distribution company.
lundi, juillet 12, 2004
L’investissement étranger en Iran
Les IDE en Iran se heurtent à plusieurs obstacles, tant d’ordre interne (règles très restrictives, prépondérance de l’Etat dans l’économie, qu’il contrôle à hauteur de 85%) qu’externe (loi d’Amato interdisant, y compris pour les sociétés non-américaines, les investissements dans le secteur pétrolier ou parapétrolier au-delà de 20 M USD).
Dans ces conditions, les flux d’IDE se trouvent fortement contraints. Même si l’évaluation de leur montant reste extrêmement aléatoire, le chiffre avancé par le FMI (international financial statistics) de 200 M USD pour 2002 (après 94 M USD en 2001 selon la même source) témoigne de cette faiblesse. Il est vrai cependant que les IDE stricto sensu ne reflètent pas la réalité des financements opérés en Iran par des sociétés étrangères, qui peuvent prendre par exemple la forme de contrats de buy-back, dont l’importance est considérable (ainsi les phases 2 et 3 de South Pars, financées pour 2 Mds USD par Total).
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Dans ces conditions, les flux d’IDE se trouvent fortement contraints. Même si l’évaluation de leur montant reste extrêmement aléatoire, le chiffre avancé par le FMI (international financial statistics) de 200 M USD pour 2002 (après 94 M USD en 2001 selon la même source) témoigne de cette faiblesse. Il est vrai cependant que les IDE stricto sensu ne reflètent pas la réalité des financements opérés en Iran par des sociétés étrangères, qui peuvent prendre par exemple la forme de contrats de buy-back, dont l’importance est considérable (ainsi les phases 2 et 3 de South Pars, financées pour 2 Mds USD par Total).
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samedi, avril 05, 2003
Les relations économiques et commerciales franco-iraniennes en 2002
Avec 6,2% de part de marché pour l’an passé, la France figure au 3ème rang des fournisseurs de l’Iran, après l’Allemagne (10%) et les Emirats Arabes Unis (9%) mais devant l’Italie (5,6%) et la Corée du Sud (5,4%). L’Iran est le 35ème client de la France au même niveau que l’Arabie Saoudite ou le Mexique. Les exportations françaises sur l’Iran sont particulièrement dynamiques : après s’être stabilisées en 1999 (600Meuros- +5%), elles ont repris en l’an 2000 (760Meuros - +26,6% par rapport à 1999) et cette tendance s’est amplifiée en 2001 (1,2Mdeuros - +51%) et s’est confirmé en 2002 (1530Meuros - +28% par rapport à 2001).
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mercredi, janvier 29, 2003
New Power Industry Law in Iran
Entekhab, Daily Newspaper, No. 1089, Jan. 28th, 2003
Author : Akbar Mahmoodi
Word Count: 3430
Despite huge investments made in recent years in the Iranian power industry to boost the country's power generation and storage capacity, ever increasing growth in electricity consumption and lack of financial sources have sounded the alarm for officials and decision makers in charge of the development of power industry in Iran. The officials of the Energy Ministry and TAVANIR confess that they are facing serious difficulties in financing power industry development projects, arguing that privatization is the only way for them to proceed with their development plans. Therefore, they have tried to encourage the private sector to make contribution to the development of this industry and reduce the government's intervention in order to finance their projects and attain their goals by getting the 35 year old power law revised.
Entekhab's economic correspondent asks Dr. Mohammad Ahmadian, the managing director of TAVANIR "What is the necessity for revision of the current power law in Iran?" He answers: "The drastic changes taking place in the size, dimensions and technology of the power industry and finally in its legal structure made it necessary for us to revise the current power industry law of 1967.
He believes that the power law revision committee that is in charge of compiling the new law should first analyze the future legal needs by comparing the status of the current law governing the power industry with other laws."
In his interview, he also referred to the possible continuation of power failures, the amount of electricity consumption in the country and the new power stations, which have been constructed and put into operations throughout the country. The following is the full text of the interview with Dr. Mohammad Ahmadian, managing director of the Power Generation and Distribution Company:
Q: Dr. Ahmadian, what developments have taken place in the power industry technology, which prompted you to revise the power law? What issues will the new law deal with more?
A: The drastic changes taking place in the size, dimensions and technology of the power industry and finally in its legal structure made it necessary for us to revise the current power industry law of 1967. A review of the structural background, goals, policies and finally its legal dimensions all point to the fact that the new law should be comprehensive and efficient. First of all, it is necessary that all dimensions of the existing law be studied carefully in comparison with other similar laws and then future legal requirements be analyzed. Furthermore, in order to determine basic axes and viewpoints in drawing up the new power law in Iran, it is important that its goals and policies be defined.
Q: Is it possible that in compiling the new law, some points are not taken into consideration?
A: The power law revision committee that is responsible for drawing up the new law should first analyze future legal requirements by comparing the current law governing the power industry with other laws and then determine the basis axes and viewpoints in drawing up the power law for the coming years so as to clarify the draft of the law. It should however be noted that in the course of the new law compilation some new points proposed by the committee may be included in the new law.
Q: What advantages the new revised power law will have over the existing law, which was passed nearly 35 years ago?
A: The provisions of the Iranian power law of 1967 were aimed at limiting the private sector activities and concentrating all activities regarding the power industry on the public sector. If you take a look at the history of power industry in Iran, you will see that a number of private institutes had embarked on generating electricity before the power law was passed. At that period of time, the power law was passed so as to enable the government to interfere in the power sector. Now, with the passage of 35 years from that date and given that the power industry has undergone serious transformation in Iran and the world and that efforts are underway to reduce the government's role in the power industry and instead encourage the private sector's contribution to this sector, it is necessary to have the current law revised.
Q: Can we say that revision of the existing power law will address the current and future needs (of this sector)?
A: As a matter of fact, this is the main goal behind the revision of the existing power law. We reached this conclusion that now that a law has to go through various decision making channels and face many problems in order to be approved, efforts have been made to draw up the new power law in a way that it can meet the needs of the country's power industry at least for the next few decades.
Q: In what stage is the new power law now?
A: At present, we are studying power laws in force in other countries. In drawing up the new law, efforts will be made to review the laws of other countries whose conditions are similar to that of Iran such as Malaysia, Singapore, Indonesia and South Korea. Then, the committee in charge of drawing up the new power law will review other Iranian laws that are somehow related to the power industry.
Q: You already made mention of the background of various power laws in the country. Would you please give more explanations in this regard?
A: The existing power law and regulations which were approved later in Iran, the Article 44 of the Iranian Constitution and its impact on the power law, the lack of integrity in the current law and regulations on power industry, power laws of other countries, particularly neighboring states and those countries that share similar social and technical conditions with Iran, the laws concerning other ministries, organizations and organs particularly the laws on water, oil, gas, roads and telecommunications with an emphasis on the legal rights of employers, subscribers, employees and retired personnel, contradictory points in laws concerning various organizations particularly municipalities and natural resources organizations are among the points that will be studied. In other words, in reviewing the structure of the power law, efforts will be made to pay more attention to new policies concerning the power structure and establishments, separation of duties, preparing the ground for competition on the market both in generating power and rendering services to subscribers by establishing specialized companies and encouraging the private sector to get involved in the power sector.
Prediction of effective mechanisms to supervise the performance of companies engaged in generation, transfer and distribution of electricity and the private rights of these companies will be given due attention in compiling the new power law.
Q: What indicators will be taken into consideration in drawing up the new law?
A: Bringing together all laws and regulations approved recently in relation to power industry is the most important topic of discussion. Updating the current power law with regards to technological changes, various climatic conditions prevailing in various parts of the country, regulations on allocation of plots of lands for establishment of power stations, separation of the limits of electricity from those of other public services such as transport, railway, oil, gas, water and telecommunications, new energies, concurrent production of energy and heat, electricity supply requirements, electricity tariff rate, purchase of lands from their owners for implementation of urgent power-related projects, drawing up standards for power industry in connection with generation, transfer and distribution of electricity, research projects, domestic production of power equipment under a necessary quality control regime, issuance of permits for export and import of domestically made power equipment, studying the role of insurance in the power industry, offering facilities in terms of tariff, customs duties and commercial profits, ways of dealing with subscribers failing to pay their bills on time, regulations governing the export, import and transit of electricity, ways of dealing with those using electricity illegally, power installations, cooperation with the justice department in enforcing the power law and prediction of necessary measures to be taken to displace power installations in case streets where they are located are to be widened, are among the main axes of the new law.
Q: What policies and goals will be followed in the new power law?
A: Making the law work in connection with regulations of other ministries and organizations, increasing its efficiency in courts of law, having legal cases related to the power industry investigated by the relevant courts of law at the earliest possible time without any delays, adoption of necessary methods for levying customs duties on sale of electricity by city councils or the Interior Ministry, preserving the rights of subscribers through payment of compensations in case of incidents or damage caused to their electric appliances and authorizing the Energy Ministry to draw up its needed regulations and by-laws are among the goals of the new law.
Q: How much will be the maximum consumption of electricity in the nationwide power grid according to your prediction? Will we have power failures in the next Iranian calendar year?
A: It is predicted that consumption of electricity will reach 26,400 megawatts at most in the next summer, showing a seven percent increase compared with the maximum consumption this year. Despite the fact that new power stations will come on stream next year, the network storage is 4.5 percent, which is far from the standard level of 20 percent. If nothing happens, it will be unlikely to have power failure next year.
Q: What are the new power plants, which have been put into operation this year?
A: The sixth unit of the Kerman power station with the capacity of 159 megawatts, the first steam unit of Fars combined cycle power station with a 100 megawatt capacity, the steam unit of Khoy combined cycle power station with the capacity of 100 megawatts, the units transferred from Rey to Bandar Abbas, the third unit of Kazeroun steam power plant with the capacity of 159 megawatts, the first unit of Karkheh hydroelectric power station with a 133 megawatt capacity, the fourth unit of Kazeroun gas power station with the capacity of 159 megawatts, the second steam unit of Fars combined cycle power plant with a 100 megawatt capacity, the first unit of Masjid Soleyman power station with the capacity of 250 megawatts, the seventh unit of Kerman gas power station with a 159 megawatt capacity, the eighth unit of Kerman gas power plant with the capacity of 159 megawatts, and the second unit of Karkheh hydroelectric power station with a 133 megawatt capacity were among the units which came on stream in the current Iranian calendar year.
Q: How much electricity was generated by Iranian power stations in the first nine months of the year?
A: The energy produced by power stations across the country in the first nine months of the current Iranian year stood at 107,000 gigawatts, registering an increase of 9.5 percent compared to the corresponding period last year. The increase in power generation was due to commissioning of new power plants, raising the capacities of the existing power stations and their better performance. It is to be noted that the consumption coefficient in the period under study was 65.77 percent, showing a 1.1 percent improvement compared with the similar period last year.
Q: Dr. Ahmadian, how much electricity was swapped with neighboring countries in the 9 month period and what are the names of those countries?
A: There has been power swap with Armenia, Turkey, the Republic of Azerbaijan and the autonomous Republic of Nakhichevan in the nine month period under study. As for Pakistan, I should mention that at present middle voltage electricity is exchanged with that country and power swap between the two states will expand with the construction of a 132 KV line in the near future. All in all, Iran received 630,500 megawatt/hour energy and transferred 292,000 magawatt/hour energy in the said nine month period. In short, the net amount of electircity received by Iran has been 338,500 megawatt/hour, which will be compensated in the winter.
Q: Earlier you spoke of the possibility of power failures in next summer because of low storage level. What is the latest rate of power failure in the nationwide grid?
A: The rate of power failure in the nationwide power grid in the first eight months of this year hs been 2.88 per one thousand megawatts, showing a decrease of 2.3 percent compared to the figure in the corresponding period last year, which stood at 2.95 per one thousand megawatts. This is while that the share of power failure resulting from shortage of generation and accidents in the transmission and distribution networks as a result of low storage level of 4.5 percent has stood at 1.54 per one thousand megawatts. This shows an increase of 7.7 percent over last year. Of course, the share of power failures resulting from the performance of distribution networks has reduced from 1.52 per one thousand megawatts in 2001 to 1.34 per one thousand megawatts in 2002, showing a decrease of 12 percent. This led to a slight improvement in the quality of electricity delivered to subscribers. Despite such a relative improvement, the average time of power failure stands at 4.15 minutes, which is not ideal. With the improvement in the production and storage of electricity, and optimization of distribution networks it is hoped that this figure would drop to 3.5 minutes per day within the next three years.
Q: Given that the country has no difficulties generating electricity, don't you think that most of the energy wasted is due to the wear and tear of the distribution networks?
A: Of course, because of the wear and tear of the distribution networks, the amount of electricity wasted is high. At present, this figure in the transmission and distribution networks stands at 17 percent. As the first step towards solving this problem, it is necessary that credits be allocated to setting up a system for measurement of energy swap. Then, we should optimize electricity transmission networks to reduce electricity losses. In order to ease this problem, a special credit has been predicted for the next Iranian calendar year to be allocated to every regional electricity company throughout the country to choose a suitable pattern for optimization of the distribution networks in their respective regions. After collecting results from various regions, the best pattern will be chosen and generalized all over the country. Furthermore, because of the preservation of electricity being generated in the country, some 10,000 billion rials will be spent next year. Moreover, 2,500 billion rials from subscription fees, 16,000 billion rials for sale of electricity and 1,600 billion rials from sale of contribution bonds will be spent to implement power projects.
Q: How much is the worth of assets belonging to the power industry in Iran?
A: The assets owned by the Iranian power industry are worth 150,000 billion rials. Because the power distribution networks in the country are now facing some problems as a result of their dilapidated and aging equipment, the country's electricity installations must be doubled within the next ten years. Therefore, an additional 150,000 billion rials should be invested in the transmission and distribution networks.
Q: How many new villages have been supplied with electricity in Iran this year? And what is the total number of villages now having access to electricity?
A: In the first nine months of this year, 550 new villages have been supplied with electricity. The majority of these villages are located in the provinces of Kerman, Sistan and Baluchestan and Khuzestan. So the number of villages now having access to electricity has exceeded 46,000. Although work is in progress to provide 1,300 other villages with electricity by regional electricity companies, supplying power to all villages scattered throughout the country that have economic justification requires more financial support on the part of the government and the Majlis (Iranian parliament). It is worth mentioning that power supply to the remaining 17,000 villages in the country with population of less than 10 families each has no economic justification and is very costly.
Q: What about the transfer of power stations to the private sector? Will TAVANIR guarantee purchase of electricity generated by these power stations?
A: In line with implementing the policies and legal provisions of the Third Five Year Economic Development Plan, the shares of all satellite companies affiliated to TAVANIR which have nothing to do with the main duties of this sector have been transferred to SATCUP, which is a specialized mother company responsible for ceding those shares to the non-governmental private companies. Next year, the specialized mother company, TAVANIR, will purchase electricity from all government and non-governmental producers at cost prices or at a mutually agreed upon price and will sell it, on a wholesale basis, to regional electricity companies for distribution among subscribers. The bylaw on guaranteed purchase of electricity is about to be approved by the cabinet ministers. Electricity will be bought from the private sector at a guaranteed rate of 127 rials per kilowatt. Based on this bylaw, measures will be taken for the first time to make the nationwide power grid render power transmission services to non-governmental producers. Therefore, in line with the policy of attracting the private sector's contribution to power generation, applications for construction of power stations were evaluated this summer and to date the competence of six groups for building two 500 megawatt power plants in Zanjan has been confirmed. The relevant tenders will be held this year. Other tenders will be announced next year for construction of power stations with a total capacity of 2,000 megawatts by the private sector. A permit has been issued to a private company to build a 2,000 megawatt power plant at Rudshur on the outskirts of Tehran and the company has made good progress in this respect so far. Negotiations with domestic and foreign investors are in progress for setting up of six power plants on B.O.T. (build, operate and transfer) basis. The "Parreh Sar" project is in its final stage and it is hoped that with cooperation from the government and the Majlis, last impedime!
nts to the launching of the project concerning offering necessary guarantees to investors will be lifted. Tender documents for sale of six power stations of Khoy, Zargan, Zarand, Shahid Zanbaq of Yazd, Chabahar and Mashhad have been prepared in line with the note 12 of the current year's budget law with the first tender for sale of these power plants being slated to be held this year.
Q: Which power generating units are to come on stream next year?
A: These are: the third unit of Iranshahr steam power plant with a capacity of 64 megawatts in spring and its fourth unit in summer of 2003, the second unit of Kazeroun gas power station with a 159 megawatt capacity, the first and second units of Abadan gas power station in spring and its third unit in summer of 2003 each with a capacity of 159 megawatts, the third unit of Fars combined cycle power station with a capacity of 100 megawatts, the first and second units of Neishabour combined cycle power station with a capacity of 100 megawatt each, the first steam unit of Shariati combined cycle power plant with a 100 megawatt capacity, the first extension unit of Shahid Abbaspour hydroelectric power station with a capacity of 250 megawatts, and the second unit of Masjid Soleyman hydroelectric power station with a 250 megawatt capacity that will be commissioned in the winter of next year.
Author : Akbar Mahmoodi
Word Count: 3430
In order to avert a crisis arising from increase in electricity consumption, Iran's power industry needs to take some measures including encouragement of the private sector to contribute to and invest in this industry. Based on the current power industry law of 1967, the power industry is under the government monopoly. By enacting a new law, the government intends to open the way for the private sector to get involved in this industry. Dr. Mohammad Ahmadian, managing director of the Power Generation and Distribution Organization (TAVANIR) in an interview published in the Persian language daily Entekhab has elaborated on the current situation in the Iranian power industry and on the features of the new law.
Despite huge investments made in recent years in the Iranian power industry to boost the country's power generation and storage capacity, ever increasing growth in electricity consumption and lack of financial sources have sounded the alarm for officials and decision makers in charge of the development of power industry in Iran. The officials of the Energy Ministry and TAVANIR confess that they are facing serious difficulties in financing power industry development projects, arguing that privatization is the only way for them to proceed with their development plans. Therefore, they have tried to encourage the private sector to make contribution to the development of this industry and reduce the government's intervention in order to finance their projects and attain their goals by getting the 35 year old power law revised.
Entekhab's economic correspondent asks Dr. Mohammad Ahmadian, the managing director of TAVANIR "What is the necessity for revision of the current power law in Iran?" He answers: "The drastic changes taking place in the size, dimensions and technology of the power industry and finally in its legal structure made it necessary for us to revise the current power industry law of 1967.
He believes that the power law revision committee that is in charge of compiling the new law should first analyze the future legal needs by comparing the status of the current law governing the power industry with other laws."
In his interview, he also referred to the possible continuation of power failures, the amount of electricity consumption in the country and the new power stations, which have been constructed and put into operations throughout the country. The following is the full text of the interview with Dr. Mohammad Ahmadian, managing director of the Power Generation and Distribution Company:
Q: Dr. Ahmadian, what developments have taken place in the power industry technology, which prompted you to revise the power law? What issues will the new law deal with more?
A: The drastic changes taking place in the size, dimensions and technology of the power industry and finally in its legal structure made it necessary for us to revise the current power industry law of 1967. A review of the structural background, goals, policies and finally its legal dimensions all point to the fact that the new law should be comprehensive and efficient. First of all, it is necessary that all dimensions of the existing law be studied carefully in comparison with other similar laws and then future legal requirements be analyzed. Furthermore, in order to determine basic axes and viewpoints in drawing up the new power law in Iran, it is important that its goals and policies be defined.
Q: Is it possible that in compiling the new law, some points are not taken into consideration?
A: The power law revision committee that is responsible for drawing up the new law should first analyze future legal requirements by comparing the current law governing the power industry with other laws and then determine the basis axes and viewpoints in drawing up the power law for the coming years so as to clarify the draft of the law. It should however be noted that in the course of the new law compilation some new points proposed by the committee may be included in the new law.
Q: What advantages the new revised power law will have over the existing law, which was passed nearly 35 years ago?
A: The provisions of the Iranian power law of 1967 were aimed at limiting the private sector activities and concentrating all activities regarding the power industry on the public sector. If you take a look at the history of power industry in Iran, you will see that a number of private institutes had embarked on generating electricity before the power law was passed. At that period of time, the power law was passed so as to enable the government to interfere in the power sector. Now, with the passage of 35 years from that date and given that the power industry has undergone serious transformation in Iran and the world and that efforts are underway to reduce the government's role in the power industry and instead encourage the private sector's contribution to this sector, it is necessary to have the current law revised.
Q: Can we say that revision of the existing power law will address the current and future needs (of this sector)?
A: As a matter of fact, this is the main goal behind the revision of the existing power law. We reached this conclusion that now that a law has to go through various decision making channels and face many problems in order to be approved, efforts have been made to draw up the new power law in a way that it can meet the needs of the country's power industry at least for the next few decades.
Q: In what stage is the new power law now?
A: At present, we are studying power laws in force in other countries. In drawing up the new law, efforts will be made to review the laws of other countries whose conditions are similar to that of Iran such as Malaysia, Singapore, Indonesia and South Korea. Then, the committee in charge of drawing up the new power law will review other Iranian laws that are somehow related to the power industry.
Q: You already made mention of the background of various power laws in the country. Would you please give more explanations in this regard?
A: The existing power law and regulations which were approved later in Iran, the Article 44 of the Iranian Constitution and its impact on the power law, the lack of integrity in the current law and regulations on power industry, power laws of other countries, particularly neighboring states and those countries that share similar social and technical conditions with Iran, the laws concerning other ministries, organizations and organs particularly the laws on water, oil, gas, roads and telecommunications with an emphasis on the legal rights of employers, subscribers, employees and retired personnel, contradictory points in laws concerning various organizations particularly municipalities and natural resources organizations are among the points that will be studied. In other words, in reviewing the structure of the power law, efforts will be made to pay more attention to new policies concerning the power structure and establishments, separation of duties, preparing the ground for competition on the market both in generating power and rendering services to subscribers by establishing specialized companies and encouraging the private sector to get involved in the power sector.
Prediction of effective mechanisms to supervise the performance of companies engaged in generation, transfer and distribution of electricity and the private rights of these companies will be given due attention in compiling the new power law.
Q: What indicators will be taken into consideration in drawing up the new law?
A: Bringing together all laws and regulations approved recently in relation to power industry is the most important topic of discussion. Updating the current power law with regards to technological changes, various climatic conditions prevailing in various parts of the country, regulations on allocation of plots of lands for establishment of power stations, separation of the limits of electricity from those of other public services such as transport, railway, oil, gas, water and telecommunications, new energies, concurrent production of energy and heat, electricity supply requirements, electricity tariff rate, purchase of lands from their owners for implementation of urgent power-related projects, drawing up standards for power industry in connection with generation, transfer and distribution of electricity, research projects, domestic production of power equipment under a necessary quality control regime, issuance of permits for export and import of domestically made power equipment, studying the role of insurance in the power industry, offering facilities in terms of tariff, customs duties and commercial profits, ways of dealing with subscribers failing to pay their bills on time, regulations governing the export, import and transit of electricity, ways of dealing with those using electricity illegally, power installations, cooperation with the justice department in enforcing the power law and prediction of necessary measures to be taken to displace power installations in case streets where they are located are to be widened, are among the main axes of the new law.
Q: What policies and goals will be followed in the new power law?
A: Making the law work in connection with regulations of other ministries and organizations, increasing its efficiency in courts of law, having legal cases related to the power industry investigated by the relevant courts of law at the earliest possible time without any delays, adoption of necessary methods for levying customs duties on sale of electricity by city councils or the Interior Ministry, preserving the rights of subscribers through payment of compensations in case of incidents or damage caused to their electric appliances and authorizing the Energy Ministry to draw up its needed regulations and by-laws are among the goals of the new law.
Q: How much will be the maximum consumption of electricity in the nationwide power grid according to your prediction? Will we have power failures in the next Iranian calendar year?
A: It is predicted that consumption of electricity will reach 26,400 megawatts at most in the next summer, showing a seven percent increase compared with the maximum consumption this year. Despite the fact that new power stations will come on stream next year, the network storage is 4.5 percent, which is far from the standard level of 20 percent. If nothing happens, it will be unlikely to have power failure next year.
Q: What are the new power plants, which have been put into operation this year?
A: The sixth unit of the Kerman power station with the capacity of 159 megawatts, the first steam unit of Fars combined cycle power station with a 100 megawatt capacity, the steam unit of Khoy combined cycle power station with the capacity of 100 megawatts, the units transferred from Rey to Bandar Abbas, the third unit of Kazeroun steam power plant with the capacity of 159 megawatts, the first unit of Karkheh hydroelectric power station with a 133 megawatt capacity, the fourth unit of Kazeroun gas power station with the capacity of 159 megawatts, the second steam unit of Fars combined cycle power plant with a 100 megawatt capacity, the first unit of Masjid Soleyman power station with the capacity of 250 megawatts, the seventh unit of Kerman gas power station with a 159 megawatt capacity, the eighth unit of Kerman gas power plant with the capacity of 159 megawatts, and the second unit of Karkheh hydroelectric power station with a 133 megawatt capacity were among the units which came on stream in the current Iranian calendar year.
Q: How much electricity was generated by Iranian power stations in the first nine months of the year?
A: The energy produced by power stations across the country in the first nine months of the current Iranian year stood at 107,000 gigawatts, registering an increase of 9.5 percent compared to the corresponding period last year. The increase in power generation was due to commissioning of new power plants, raising the capacities of the existing power stations and their better performance. It is to be noted that the consumption coefficient in the period under study was 65.77 percent, showing a 1.1 percent improvement compared with the similar period last year.
Q: Dr. Ahmadian, how much electricity was swapped with neighboring countries in the 9 month period and what are the names of those countries?
A: There has been power swap with Armenia, Turkey, the Republic of Azerbaijan and the autonomous Republic of Nakhichevan in the nine month period under study. As for Pakistan, I should mention that at present middle voltage electricity is exchanged with that country and power swap between the two states will expand with the construction of a 132 KV line in the near future. All in all, Iran received 630,500 megawatt/hour energy and transferred 292,000 magawatt/hour energy in the said nine month period. In short, the net amount of electircity received by Iran has been 338,500 megawatt/hour, which will be compensated in the winter.
Q: Earlier you spoke of the possibility of power failures in next summer because of low storage level. What is the latest rate of power failure in the nationwide grid?
A: The rate of power failure in the nationwide power grid in the first eight months of this year hs been 2.88 per one thousand megawatts, showing a decrease of 2.3 percent compared to the figure in the corresponding period last year, which stood at 2.95 per one thousand megawatts. This is while that the share of power failure resulting from shortage of generation and accidents in the transmission and distribution networks as a result of low storage level of 4.5 percent has stood at 1.54 per one thousand megawatts. This shows an increase of 7.7 percent over last year. Of course, the share of power failures resulting from the performance of distribution networks has reduced from 1.52 per one thousand megawatts in 2001 to 1.34 per one thousand megawatts in 2002, showing a decrease of 12 percent. This led to a slight improvement in the quality of electricity delivered to subscribers. Despite such a relative improvement, the average time of power failure stands at 4.15 minutes, which is not ideal. With the improvement in the production and storage of electricity, and optimization of distribution networks it is hoped that this figure would drop to 3.5 minutes per day within the next three years.
Q: Given that the country has no difficulties generating electricity, don't you think that most of the energy wasted is due to the wear and tear of the distribution networks?
A: Of course, because of the wear and tear of the distribution networks, the amount of electricity wasted is high. At present, this figure in the transmission and distribution networks stands at 17 percent. As the first step towards solving this problem, it is necessary that credits be allocated to setting up a system for measurement of energy swap. Then, we should optimize electricity transmission networks to reduce electricity losses. In order to ease this problem, a special credit has been predicted for the next Iranian calendar year to be allocated to every regional electricity company throughout the country to choose a suitable pattern for optimization of the distribution networks in their respective regions. After collecting results from various regions, the best pattern will be chosen and generalized all over the country. Furthermore, because of the preservation of electricity being generated in the country, some 10,000 billion rials will be spent next year. Moreover, 2,500 billion rials from subscription fees, 16,000 billion rials for sale of electricity and 1,600 billion rials from sale of contribution bonds will be spent to implement power projects.
Q: How much is the worth of assets belonging to the power industry in Iran?
A: The assets owned by the Iranian power industry are worth 150,000 billion rials. Because the power distribution networks in the country are now facing some problems as a result of their dilapidated and aging equipment, the country's electricity installations must be doubled within the next ten years. Therefore, an additional 150,000 billion rials should be invested in the transmission and distribution networks.
Q: How many new villages have been supplied with electricity in Iran this year? And what is the total number of villages now having access to electricity?
A: In the first nine months of this year, 550 new villages have been supplied with electricity. The majority of these villages are located in the provinces of Kerman, Sistan and Baluchestan and Khuzestan. So the number of villages now having access to electricity has exceeded 46,000. Although work is in progress to provide 1,300 other villages with electricity by regional electricity companies, supplying power to all villages scattered throughout the country that have economic justification requires more financial support on the part of the government and the Majlis (Iranian parliament). It is worth mentioning that power supply to the remaining 17,000 villages in the country with population of less than 10 families each has no economic justification and is very costly.
Q: What about the transfer of power stations to the private sector? Will TAVANIR guarantee purchase of electricity generated by these power stations?
A: In line with implementing the policies and legal provisions of the Third Five Year Economic Development Plan, the shares of all satellite companies affiliated to TAVANIR which have nothing to do with the main duties of this sector have been transferred to SATCUP, which is a specialized mother company responsible for ceding those shares to the non-governmental private companies. Next year, the specialized mother company, TAVANIR, will purchase electricity from all government and non-governmental producers at cost prices or at a mutually agreed upon price and will sell it, on a wholesale basis, to regional electricity companies for distribution among subscribers. The bylaw on guaranteed purchase of electricity is about to be approved by the cabinet ministers. Electricity will be bought from the private sector at a guaranteed rate of 127 rials per kilowatt. Based on this bylaw, measures will be taken for the first time to make the nationwide power grid render power transmission services to non-governmental producers. Therefore, in line with the policy of attracting the private sector's contribution to power generation, applications for construction of power stations were evaluated this summer and to date the competence of six groups for building two 500 megawatt power plants in Zanjan has been confirmed. The relevant tenders will be held this year. Other tenders will be announced next year for construction of power stations with a total capacity of 2,000 megawatts by the private sector. A permit has been issued to a private company to build a 2,000 megawatt power plant at Rudshur on the outskirts of Tehran and the company has made good progress in this respect so far. Negotiations with domestic and foreign investors are in progress for setting up of six power plants on B.O.T. (build, operate and transfer) basis. The "Parreh Sar" project is in its final stage and it is hoped that with cooperation from the government and the Majlis, last impedime!
nts to the launching of the project concerning offering necessary guarantees to investors will be lifted. Tender documents for sale of six power stations of Khoy, Zargan, Zarand, Shahid Zanbaq of Yazd, Chabahar and Mashhad have been prepared in line with the note 12 of the current year's budget law with the first tender for sale of these power plants being slated to be held this year.
Q: Which power generating units are to come on stream next year?
A: These are: the third unit of Iranshahr steam power plant with a capacity of 64 megawatts in spring and its fourth unit in summer of 2003, the second unit of Kazeroun gas power station with a 159 megawatt capacity, the first and second units of Abadan gas power station in spring and its third unit in summer of 2003 each with a capacity of 159 megawatts, the third unit of Fars combined cycle power station with a capacity of 100 megawatts, the first and second units of Neishabour combined cycle power station with a capacity of 100 megawatt each, the first steam unit of Shariati combined cycle power plant with a 100 megawatt capacity, the first extension unit of Shahid Abbaspour hydroelectric power station with a capacity of 250 megawatts, and the second unit of Masjid Soleyman hydroelectric power station with a 250 megawatt capacity that will be commissioned in the winter of next year.
lundi, novembre 12, 2001
Internet, Mobile and Satellite in Iran;An Interview with Seyyed Ahmad Motamedi
Nowruz, Daily Newspaper, No. 146, Sep. 27th, 2001, Page 10
Author : Bahman Ahmadi
Word Count: 4542
Minister of Communications and Modern Technology Dr. Seyyed Ahmad Motamedi believes that slow trend of privatization in the communications sector in Iran is due to the fact that the sector has been under control of government for over 80 years. He maintains that if there is a place in the world where someone can have two-way international communications without control of and permission from the government, we will be the second one. By the end of the Third Five Year Economic Development Plan (March 2000 - March 2005), the number of Internet users in Iran will have reached 15 million. At present, networks in 74 Iranian cities are ready to be inaugurated and 70 centers all over the country have been connected to fiber optic.
Seyyed Ahmad Motamedi
Q: Privatization is one of the most important goals of the Third Five Year Development Plan and the government. It seems that this issue has not been given any attention in the communications sector. We are now on the second year of the Third Development Plan while there is still no sign of privatization in the Ministry of Communications and Modern Technology. Have nothing been really done in this respect or something have been done but its news have not leaked out?
A: We as officials in charge of the Ministry of Communications and Modern Technology believe in the Third Plan law and privatization. Perhaps, the special status of the ministry and frequent replacements of communications minister last year is one of the obstacles hindering the enforcement of privatization program. But since I was appointed to this post in last April, I have announced that privatization is on my agenda. So far we have received four procedural bylaws on privatization from the cabinet ministers. At present, I can say for sure that there is no specific problems or hindrances to the enforcement of privatization in the communication sector. We announced in June this year that we would cede pager as the first service to the private sector and we are now studying qualifications of bidders to announced the final winners in a month. Preliminaries have been taken for other sections and for some of them we have employed domestic and foreign advisors. Of course, the privatization of communications sector is different from that of other sectors because communications have been under full government monopoly for 60 years and post for 80 years, with only a small parts of the job being transferred to the private sector. We lack a reliable private sector or highly competent private company in this sector whereas we have more capabilities in the construction and industry sectors compared to the communications. Under such circumstances, if we cede a complicated network such as communications to a private sector that enjoys good financial status but lacks necessary expertise and experience, that company will certainly make loss while people will not receive satisfactory services. Furthermore, this needs a highly accurate instruction manual from technical point of view. In some advanced countries, there are instruction manuals containing up to 1,500 pages on connection of networks in the private and public sectors. Of course, in easier sections such as Internet and coffee-nets, efforts are underway to completely privatize networks of ministries such as ASP (suppliers of Internet services). Even, we have made necessary predictions for formation of private firms for this purpose in remote cities and towns by offering financial assistance to them. For privatization of the communications sector, we have divided capitals into three small, medium and large categories. Coffee-nets and postal service offices have been allocated for those possessing small capitals which will be responsible to render services to telephone and mobile subscribers as well as postal services. It has been predicted that there will be thousands of applicants for running these offices. For those with medium capitals, we intend to authorize them to offer telephone services and ASP (suppliers of Internet services) while those possessing large capitals will be permitted to offer mobile services. The last section needs a large amount of capital and have to pay high license fees and for this reasons, foreign companies are likely to be more successful than domestic ones which lack such high financial capabilities. In the last meeting of the Privatization Committee, it was decided that those sections that need huge investments should be tendered and companies participating in the tenders should be categorized in terms of their capital, manpower, equipment and experiences and in later stage and with completion of the procedural manual such jobs will be ceded to the private sector without any monopoly right.
Q: So, you have actually been at the stage of preparing procedural manual and no practical measures have been taken in this regard.
A: Yes. No practical steps have been taken in any of these sections. Moreover preparation of the procedural manual is a practical step towards privatization. However, we will certainly release necessary public notices for various sections as of next month until the end of the current Iranian calendar year (ending March 2002).
Q: In parts of your remarks, you said foreign companies could be active in offering mobiles to the private sector and for technical reasons they are likely to be winners in international tenders. Are there not any legal problems in this respect?
A: If foreign companies register in Iran or have partnership with an Iranian firm, there will be no specific legal problem. Moreover, the regulations that exist in the communications sector for foreign companies are like those in other sectors and the door is not closed to foreign investment. Necessary preparations have been made for this purpose and so far many applications have been received.
Q: Which companies for example?
A: I had better not mention any name. But these companies have been from Germany, Italy and France. We have notified to them to be ready until we prepare the procedural regulations.
Q: You said you have employed some advisors for transfer of some sections of the communications sector to the private sector. I want to know whether these advisors are Iranian or of foreign nationals.
A: We have used domestic advisors for certain sections and in other fields we have employed foreigners. We have launched a six month long plan in cooperation with the International Telecommunications Union (ITU) which is now nearing its completion. The plan includes the issue of privatization and the ITU experts are helping us in this respect. We will make use of domestic and foreign advisors if necessary from now on.
Q: It is said that a company has been set up and registered with the joint investments of the Industries Development and Renovation Organization, the Mostazafan and Janbazan Foundation (the Foundation for the Oppressed and Disabled War Veterans) and Sa-Iran (Iran Electronics Industries) to get a share in those parts of the communications sector to be ceded to the private sector. This company will be state-run in nature and not a private one. Is this true? Don't you think your statements that there is no reliable and acceptable communication firm in the Iranian private sector, strengthen this rumor?
A: I know nothing about this issue but what is of great importance to us is acting according to the law. If the said company is considered as a non-governmental entity by the law, it can participate in all tenders and if it is a state-run firm or is governmental in nature, it cannot get involved in this field. However, if the company is registered as a private one we cannot legally prevent it from entering into such activities. At any rate, we will not give any special advantage or concessions to such companies. It is sometimes said that state-run firms enjoy special advantages and but in response to these remarks I hereby announce that we will not give any concession to anyone. I, however, think that they will not be able to compete.
Q: With whom they should compete? You said we do not have a creditable private sector.
A: It will be established. Besides, because activity in the field of mobile needs high technical capabilities and huge investments, I don't think the company you mentioned will be able to engage in this field. Therefore, it seems that it will be necessary to make use of foreign companies in this respect. But as far as telephone services are concerned, domestic companies are able to render such services. No need to say that commissioning and offering mobile services in all Third World countries are carried out by foreign firms. Of course, in tendering such projects, we will take into account the national interests of the country and will not grant the plan to every company or bidder. This is because the issue is very sensitive and we must take the views of experts and cabinet ministers into consideration.
Q: It is said that certain top officials of the Islamic Republic of Iran have taken position against use of Internet and as a result the Ministry of Communications and officials of the Iranian radio and television have been instructed to impose some restrictions on the use of Internet. Is this true?
A: The macro policies concerning the use of information and Internet networks were outlined by the Leader of the Islamic Revolution (Ayatollah Ali Khamenei) one or two months ago. These policies are clear and transparent and he (the Leader) emphasizes the use and development of Internet. There is no officials in the Islamic Republic of Iran who may not believe in the development of communications networks. This is one of the priorities of the government of President Mohammad Khatami. I personally have not met any high ranking official who may be opposed to the development of communications networks. As for restriction as mentioned by you, can you name a place in the world where there exist no restrictions. There are a series of limitations in every part of the world. The liberal governments of Europe and the United States have enacted accurate and clear regulations for imposition of restrictions. They have very serious and tough regulations on security issues. In our country, we are now facing two extremist ways of thinking. Some believe that there should not be any restriction on the development of the Internet network at all because some domestic firms will benefit from lack of such regulations in order that they can do whatever they wish to do. Unfortunately, there have been some instances of this which caused some security problems for the country. What is the matter is the health of the society. There is another way of thinking which believes in absolute monopoly and absolute restriction. In this case, only a few specific people can have access to the network. We are opposed to both ways of thinking and believe in the development of the network. For this reason, we are to raise the total number of network users to 15 million by the end of the Third Economic Development Plan. At present, networks in 74 cities are ready for inauguration. We have cut the prices nearly by half and removed advanced payment requirement. While believing in development of network legally, at the same time we announce that there do exist certain restrictions.
Q: Development is something but how to use the network is something else. Will some restrictions be imposed in these fields?
A: There are not too many restrictions and they are like those imposed elsewhere in the world. There are almost no restrictions on coffee-nets and ASP except for a permit the applicants must get. However, we are sensitive to international telephone contacts. Not every body can engage in this field because there are certain regulations and laws.
Q: Is this due to its incomes?
A: No. Incomes from this sector is not very important to us. The Communications Ministry does not count on Internet incomes for the next few years. The incomes from Internet are nearly null compared to the revenues from other sectors.
Q: So, what is the reason for your sensitivity?
A: This is because of security issues. In every part of the world, making phone calls through Internet is either under monopoly of the state or fully controlled by it. If there is a place in the world where someone can have two-way international contacts without control of or permission from government, we will be the second country of this kind. The ministry's proposal is that the issue should not be monopolized. Both private and public firms should be able to do this. Of course, it is the High Council for Cultural Revolution that will make the final decision in this respect. If someone wants to get a permission, he or she must refer to the High Information Council which functions under the president's supervision.
Q: The High Information Council is not entitled by law to make legislation. Is it?
A: This council functions under the supervision of the government. Eight ministers are members of the council which is presided over by the president. In order for something to become law, it should be referred to the parliament (Majlis) or High Council for Cultural Revolution.
Q: It seems that the High Council for Cultural Revolution is not authorized by law to make legislation. Is this true?
A: This has nothing to do with us. Making decision on where regulations and approvals must be referred to, so as to become law, rests with the president himself. Moreover, it has been common for the High Council for Cultural Revolution to make legislation on matters related to itself. Wherever, we need legislation, we will refer to the president.
Q: It is said that the Islamic Republic of Iran's Broadcasting (IRIB- radio and television organization) is one of the sponsors of the Internet. Is this true?
A: No. We are strongly opposed to this measure of the IRIB. Their activities must be within the limits of the radio and television organization. Establishing two-way communications is among the duties of the Communications Ministry. In all bylaws (so far approved) all these duties have been entrusted to the Communications Ministry. Of course there are certain people who hold contrary views but we are fully opposed to this. Nothing has been approved to the effect that the IRIB can function like a ministry. This is not a common practice elsewhere in the world. Internet is part of the ITU (International Telecommunication Union) which has named this year as the Year of Internet.
Q: In May this year you promised that both the price and speed of Internet would change, but it seems that the speed of the network has not increased and the price has remained unchanged.
A: No. It is not so. The speed (of the Internet) has increased and the prices have declined. Pushing down the prices required that a series of measures be taken one by one which have been completed, leading to an up to 50 percent reduction in the prices. Advanced payment requirement has also been removed. Before this, applicants had to pay 200 million rials as advanced payment. Now we have removed this requirement and cut down subscription fees by 40 to 50 percent.
Q: Does this apply to ASPs?
A: This applies to all those applying for access to the Internet. This has served to increase the number of applicants. The speed of the network has also been increased.
Q: But this is not tangible in case of Internet users!
A: No, it has changed. I myself as an Internet user very well feels the change in the network speed.
Q: But this change is not tangible for most of people and users!
A: I am sure their problem emanates from their telephone lines. So far, we have spent over 1,000 billion rials on the network and have connected 70 centers in the country with the fiber optic. At present, we have no problem in Tehran. A two way 150 megabyte line with high speed is now active between Tehran, Isfahan and Shiraz. We have increased the speed of international communications lines from 44 to 88 megabytes and the figure is to increase by 155 megabytes by the year end. I am sure that by the end of the current Iranian calendar year (ending March 21, 2002) we will have had the strongest Internet network in the region. Before cutting down the prices, there were no applications for ASP in the southern Province of Hormuzgan but at present we have received 17 applications for ASP in that province.
Q: Suppliers of Internet and ASP services claim that no consultations have been made with them in compiling bylaws although you said they were being looked at as a guild and that you should at least have more cooperation with them.
A: We have compiled bylaws for coffee-nets in cooperation with their guild. The secretary of the High Information Council is in contact with them. We are now helping them emerge as an independent guild. Contrary to what some may believe, we look at them (coffee-nets) as our colleagues. We believe that the Internet sector is the biggest job creating center in the private sector.
Q: But some believe that in compiling the bylaws, no attention had been paid to their views and experiences.
A: We cannot release public notices for compilation of each and every bylaw in order to collect the views of others. The views are quite clear. The guild issued a bylaw which we used it temporarily. Moreover, we have proposed to the High Council for Cultural Revolution that the guild be entrusted with the task of issuing permits to applicants. Of course, our proposal has not been approved by the High Council for Cultural Revolution despite being already passed by the High Information Council. We believe that we should render financial assistance to applicants in other Iranian cities. Meanwhile, we are likely to further cut down on the prices in the future. When we are connected to the international fiber optic network in the next few months, the cost price will be much lesser than satellite communications.
Q: It is said that the Microsoft company of the U.S. is to send a satellite to the space in the next one or two months which will enable Internet users throughout the world to get connected to the international network by means of a dish which is much smaller than those used for receiving satellite TV programs. In that case there will be no need for applicants to refer to your ministry for this purpose. What will be your reaction to this?
A: If we can offer better and less expensive services to our customers, they will not need to use satellite.
Q: The radio and television organization (IRIB) had made similar claims about TV programs but in practice something else happened.
A: The IRIB never authorized use of satellite TV channels.
Q: Yes. But people are now using it and this is on the rise.
A: We do not want this to happen again in case of Internet. We believe in the development and promotion of the network and like many other countries we will impose restrictions on its negative points.
Q: Your excellency, Mr. Etemadi, the radio and television organization offered similar reasoning for its drive to confront and compete with satellites but it has not gained any success. Despite increase in the number of IRIB channels, the demands for use of satellites are on the rise.
A: You are trying to forcibly convince us that we will impose restrictions.
Q: Let us not call it restriction but technological progress will prepare the ground for everybody to get connected to the international network without having to refer to your ministry.
A: Everybody can do this if he or she wishes to do so.
Q: What will you do in return?
A: If someone install a two-way satellite dish, we will certainly prevent him or her. Nobody is entitled to have two-way contacts without referring to us. It will be easy for us to control this from technical point of view. If someone embark on installing a two-way antenna, it will be easily detected by our devices and equipment. TV satellite dishes are one-way antenna because they only receive TV waves and this is why they cannot be controlled. Moreover, it is none of our business to control TV satellite dishes. I am in charge of the communications of the country and our policies are the same as the government's. If we want to prevent someone from installing unauthorized two-way antenna, we will certainly do so. Anybody wishing to use it can get a permit from us. We had already made a proposal to this effect.
Q: You mean you have suggested that people can use satellite dishes after referring to you?
A: Not people. Companies can do this. However, I can assure you that people will not do this because in that case the cost price for them will be five times as much the price we are now offering them. Restrictions will be imposed on only commonplace sites. We are sure that no one else will be able to compete with our services. Our motto is 'cheap services with high quality'.
Q: Mr. minister, have you happened to make a call by your mobile and hear this message that 'access is denied'?
A: It makes no difference for a mobile to make a call with someone a meter away or two kilometers away. It by itself cannot establish contact rather it should pass several stages in order to establish contact. Like many other people, I have had such an experience and heard such a message.
Q: What do you think is the reason for mobile subscribers to get different results by changing their positions by a few meters while talking on the phone?
A: There is no doubt that mobile network in Tehran has some problems. Since we started our work in last February, we have increased capacities of Tehran network by between 36 and 61 percent. Based on statistics, we have managed to increase the speed of operation five folds. There have been no flaws in installation of equipment and we have expected the situation to improve since last March.
Q: Why did it not improve?
A: The problem arose from imperfect design. The advisor, we employed, using latest foreign software and existing data on the Tehran mobile network, reached the conclusion that the design had been imperfect. When the plan was launched in 1994, there were some flaws in the system. Of course, the technology and equipment chosen and used were completely up to date in the world at that time. The initial plan was based on 100,000 lines but later the number increased to 300,000 and then to 800,000. There existed no comprehensive plan to this end which could be used as the base for development of the network. No plans were enforced to improve the network either. This has resulted in us not being able to locate proper place for erection of our antennas. The advisor has opined that many of the existing antennas have to be displaced. There are many frequency interventions. The directions of antennas have not be chosen correctly and there are some problems with some network softwares. On the one hand, we are sorry why the initial design was defective and on the other we are glad that we have detected the main problem to a large degree. We have launched efforts to improve the network and our experts are working round the clock in three consecutive working shifts to remove problems. Of course, the problems arising from frequency interventions and redirection of antennas can be solved quickly but relocation of the antennas need more time. Simultaneous with this, we are now busy compiling a comprehensive plan for the Tehran network.
Q: When do you think these problems will be solved?
A: I will announce the exact date after the advisor gives us his final view. In political affairs it is easy to announce a date but in technical and engineering affairs telling the time is the task of experts. However, I guess that the foreign advisor will most probably confirm the domestic advisor's viewpoints. Three months after we receive the advisors' views, we will witness an improvement in the status of the network. Of course, such an improvement will not be one hundred percent but rather fifty percent at least. Afterwards, we will begin accepting new subscribers in accordance with the network capacity.
Q: You mean the prices are artificially high now!
A: No. The real price is what is offered on market. We deliver mobile at a lower price than its market value. No doubt that the prices will go down after new series of mobiles are delivered to applicants. We do not insist at all on keeping the prices stable. We sometimes ask ourselves this question whether our mobile and its related services are cheap or they are expensive compared to other countries of the world. According to a report released by the International Telecommunications Union (ITU), Siemens company of Iran is offering the least expensive services among 75 countries of the world. Of course, some countries either receive advanced payment or receive nothing at all, but their monthly subscription fee is very high. We are going to use two pricing methods for our services in the future, or in other words, we will remove advanced payment requirement but increase subscription fee.
Q: What did happen to the Zohreh satellite project?
A: Discussions on this satellite date back to 1986. Of course, the project has many proponents and opponents. So far we have paid 20 million dollars for renting some points on it. Based on a decision approved by the Majlis and National Security Council, we, too, are in favor of the implementation of the project and we are now passing through its final stages. We have also picked the company that is to put the satellite on the orbit.
Q: What is the name of that company?
A: I cannot reveal its name. It is now at the stage of signing contract. Although we enjoy necessary authorities to finalize the contract, due to the sensitivity of the issue, we have preferred to let the government make the final decision. The contract will probably be finalized this year.
Q: What is the reason for opposition to the project?
A: Some do not consider it to be economical and some experts and members of parliament believe that it has no justification. Of course, the price to which we and the foreign company have agreed is economical. Moreover, the parliament (Majlis) has permitted us to buy at least one of our desired points on the satellite in case the price turn out to be uneconomical.
Q: How much is the final price?
A: Let me not disclose the final price because the contract is in its final stage. We have not even revealed the price for the parliament. However, it is very reasonable and much less than those initially offered.
Author : Bahman Ahmadi
Word Count: 4542
Minister of Communications and Modern Technology Dr. Seyyed Ahmad Motamedi believes that slow trend of privatization in the communications sector in Iran is due to the fact that the sector has been under control of government for over 80 years. He maintains that if there is a place in the world where someone can have two-way international communications without control of and permission from the government, we will be the second one. By the end of the Third Five Year Economic Development Plan (March 2000 - March 2005), the number of Internet users in Iran will have reached 15 million. At present, networks in 74 Iranian cities are ready to be inaugurated and 70 centers all over the country have been connected to fiber optic.
Seyyed Ahmad Motamedi
Q: Privatization is one of the most important goals of the Third Five Year Development Plan and the government. It seems that this issue has not been given any attention in the communications sector. We are now on the second year of the Third Development Plan while there is still no sign of privatization in the Ministry of Communications and Modern Technology. Have nothing been really done in this respect or something have been done but its news have not leaked out?
A: We as officials in charge of the Ministry of Communications and Modern Technology believe in the Third Plan law and privatization. Perhaps, the special status of the ministry and frequent replacements of communications minister last year is one of the obstacles hindering the enforcement of privatization program. But since I was appointed to this post in last April, I have announced that privatization is on my agenda. So far we have received four procedural bylaws on privatization from the cabinet ministers. At present, I can say for sure that there is no specific problems or hindrances to the enforcement of privatization in the communication sector. We announced in June this year that we would cede pager as the first service to the private sector and we are now studying qualifications of bidders to announced the final winners in a month. Preliminaries have been taken for other sections and for some of them we have employed domestic and foreign advisors. Of course, the privatization of communications sector is different from that of other sectors because communications have been under full government monopoly for 60 years and post for 80 years, with only a small parts of the job being transferred to the private sector. We lack a reliable private sector or highly competent private company in this sector whereas we have more capabilities in the construction and industry sectors compared to the communications. Under such circumstances, if we cede a complicated network such as communications to a private sector that enjoys good financial status but lacks necessary expertise and experience, that company will certainly make loss while people will not receive satisfactory services. Furthermore, this needs a highly accurate instruction manual from technical point of view. In some advanced countries, there are instruction manuals containing up to 1,500 pages on connection of networks in the private and public sectors. Of course, in easier sections such as Internet and coffee-nets, efforts are underway to completely privatize networks of ministries such as ASP (suppliers of Internet services). Even, we have made necessary predictions for formation of private firms for this purpose in remote cities and towns by offering financial assistance to them. For privatization of the communications sector, we have divided capitals into three small, medium and large categories. Coffee-nets and postal service offices have been allocated for those possessing small capitals which will be responsible to render services to telephone and mobile subscribers as well as postal services. It has been predicted that there will be thousands of applicants for running these offices. For those with medium capitals, we intend to authorize them to offer telephone services and ASP (suppliers of Internet services) while those possessing large capitals will be permitted to offer mobile services. The last section needs a large amount of capital and have to pay high license fees and for this reasons, foreign companies are likely to be more successful than domestic ones which lack such high financial capabilities. In the last meeting of the Privatization Committee, it was decided that those sections that need huge investments should be tendered and companies participating in the tenders should be categorized in terms of their capital, manpower, equipment and experiences and in later stage and with completion of the procedural manual such jobs will be ceded to the private sector without any monopoly right.
Q: So, you have actually been at the stage of preparing procedural manual and no practical measures have been taken in this regard.
A: Yes. No practical steps have been taken in any of these sections. Moreover preparation of the procedural manual is a practical step towards privatization. However, we will certainly release necessary public notices for various sections as of next month until the end of the current Iranian calendar year (ending March 2002).
Q: In parts of your remarks, you said foreign companies could be active in offering mobiles to the private sector and for technical reasons they are likely to be winners in international tenders. Are there not any legal problems in this respect?
A: If foreign companies register in Iran or have partnership with an Iranian firm, there will be no specific legal problem. Moreover, the regulations that exist in the communications sector for foreign companies are like those in other sectors and the door is not closed to foreign investment. Necessary preparations have been made for this purpose and so far many applications have been received.
Q: Which companies for example?
A: I had better not mention any name. But these companies have been from Germany, Italy and France. We have notified to them to be ready until we prepare the procedural regulations.
Q: You said you have employed some advisors for transfer of some sections of the communications sector to the private sector. I want to know whether these advisors are Iranian or of foreign nationals.
A: We have used domestic advisors for certain sections and in other fields we have employed foreigners. We have launched a six month long plan in cooperation with the International Telecommunications Union (ITU) which is now nearing its completion. The plan includes the issue of privatization and the ITU experts are helping us in this respect. We will make use of domestic and foreign advisors if necessary from now on.
Q: It is said that a company has been set up and registered with the joint investments of the Industries Development and Renovation Organization, the Mostazafan and Janbazan Foundation (the Foundation for the Oppressed and Disabled War Veterans) and Sa-Iran (Iran Electronics Industries) to get a share in those parts of the communications sector to be ceded to the private sector. This company will be state-run in nature and not a private one. Is this true? Don't you think your statements that there is no reliable and acceptable communication firm in the Iranian private sector, strengthen this rumor?
A: I know nothing about this issue but what is of great importance to us is acting according to the law. If the said company is considered as a non-governmental entity by the law, it can participate in all tenders and if it is a state-run firm or is governmental in nature, it cannot get involved in this field. However, if the company is registered as a private one we cannot legally prevent it from entering into such activities. At any rate, we will not give any special advantage or concessions to such companies. It is sometimes said that state-run firms enjoy special advantages and but in response to these remarks I hereby announce that we will not give any concession to anyone. I, however, think that they will not be able to compete.
Q: With whom they should compete? You said we do not have a creditable private sector.
A: It will be established. Besides, because activity in the field of mobile needs high technical capabilities and huge investments, I don't think the company you mentioned will be able to engage in this field. Therefore, it seems that it will be necessary to make use of foreign companies in this respect. But as far as telephone services are concerned, domestic companies are able to render such services. No need to say that commissioning and offering mobile services in all Third World countries are carried out by foreign firms. Of course, in tendering such projects, we will take into account the national interests of the country and will not grant the plan to every company or bidder. This is because the issue is very sensitive and we must take the views of experts and cabinet ministers into consideration.
Q: It is said that certain top officials of the Islamic Republic of Iran have taken position against use of Internet and as a result the Ministry of Communications and officials of the Iranian radio and television have been instructed to impose some restrictions on the use of Internet. Is this true?
A: The macro policies concerning the use of information and Internet networks were outlined by the Leader of the Islamic Revolution (Ayatollah Ali Khamenei) one or two months ago. These policies are clear and transparent and he (the Leader) emphasizes the use and development of Internet. There is no officials in the Islamic Republic of Iran who may not believe in the development of communications networks. This is one of the priorities of the government of President Mohammad Khatami. I personally have not met any high ranking official who may be opposed to the development of communications networks. As for restriction as mentioned by you, can you name a place in the world where there exist no restrictions. There are a series of limitations in every part of the world. The liberal governments of Europe and the United States have enacted accurate and clear regulations for imposition of restrictions. They have very serious and tough regulations on security issues. In our country, we are now facing two extremist ways of thinking. Some believe that there should not be any restriction on the development of the Internet network at all because some domestic firms will benefit from lack of such regulations in order that they can do whatever they wish to do. Unfortunately, there have been some instances of this which caused some security problems for the country. What is the matter is the health of the society. There is another way of thinking which believes in absolute monopoly and absolute restriction. In this case, only a few specific people can have access to the network. We are opposed to both ways of thinking and believe in the development of the network. For this reason, we are to raise the total number of network users to 15 million by the end of the Third Economic Development Plan. At present, networks in 74 cities are ready for inauguration. We have cut the prices nearly by half and removed advanced payment requirement. While believing in development of network legally, at the same time we announce that there do exist certain restrictions.
Q: Development is something but how to use the network is something else. Will some restrictions be imposed in these fields?
A: There are not too many restrictions and they are like those imposed elsewhere in the world. There are almost no restrictions on coffee-nets and ASP except for a permit the applicants must get. However, we are sensitive to international telephone contacts. Not every body can engage in this field because there are certain regulations and laws.
Q: Is this due to its incomes?
A: No. Incomes from this sector is not very important to us. The Communications Ministry does not count on Internet incomes for the next few years. The incomes from Internet are nearly null compared to the revenues from other sectors.
Q: So, what is the reason for your sensitivity?
A: This is because of security issues. In every part of the world, making phone calls through Internet is either under monopoly of the state or fully controlled by it. If there is a place in the world where someone can have two-way international contacts without control of or permission from government, we will be the second country of this kind. The ministry's proposal is that the issue should not be monopolized. Both private and public firms should be able to do this. Of course, it is the High Council for Cultural Revolution that will make the final decision in this respect. If someone wants to get a permission, he or she must refer to the High Information Council which functions under the president's supervision.
Q: The High Information Council is not entitled by law to make legislation. Is it?
A: This council functions under the supervision of the government. Eight ministers are members of the council which is presided over by the president. In order for something to become law, it should be referred to the parliament (Majlis) or High Council for Cultural Revolution.
Q: It seems that the High Council for Cultural Revolution is not authorized by law to make legislation. Is this true?
A: This has nothing to do with us. Making decision on where regulations and approvals must be referred to, so as to become law, rests with the president himself. Moreover, it has been common for the High Council for Cultural Revolution to make legislation on matters related to itself. Wherever, we need legislation, we will refer to the president.
Q: It is said that the Islamic Republic of Iran's Broadcasting (IRIB- radio and television organization) is one of the sponsors of the Internet. Is this true?
A: No. We are strongly opposed to this measure of the IRIB. Their activities must be within the limits of the radio and television organization. Establishing two-way communications is among the duties of the Communications Ministry. In all bylaws (so far approved) all these duties have been entrusted to the Communications Ministry. Of course there are certain people who hold contrary views but we are fully opposed to this. Nothing has been approved to the effect that the IRIB can function like a ministry. This is not a common practice elsewhere in the world. Internet is part of the ITU (International Telecommunication Union) which has named this year as the Year of Internet.
Q: In May this year you promised that both the price and speed of Internet would change, but it seems that the speed of the network has not increased and the price has remained unchanged.
A: No. It is not so. The speed (of the Internet) has increased and the prices have declined. Pushing down the prices required that a series of measures be taken one by one which have been completed, leading to an up to 50 percent reduction in the prices. Advanced payment requirement has also been removed. Before this, applicants had to pay 200 million rials as advanced payment. Now we have removed this requirement and cut down subscription fees by 40 to 50 percent.
Q: Does this apply to ASPs?
A: This applies to all those applying for access to the Internet. This has served to increase the number of applicants. The speed of the network has also been increased.
Q: But this is not tangible in case of Internet users!
A: No, it has changed. I myself as an Internet user very well feels the change in the network speed.
Q: But this change is not tangible for most of people and users!
A: I am sure their problem emanates from their telephone lines. So far, we have spent over 1,000 billion rials on the network and have connected 70 centers in the country with the fiber optic. At present, we have no problem in Tehran. A two way 150 megabyte line with high speed is now active between Tehran, Isfahan and Shiraz. We have increased the speed of international communications lines from 44 to 88 megabytes and the figure is to increase by 155 megabytes by the year end. I am sure that by the end of the current Iranian calendar year (ending March 21, 2002) we will have had the strongest Internet network in the region. Before cutting down the prices, there were no applications for ASP in the southern Province of Hormuzgan but at present we have received 17 applications for ASP in that province.
Q: Suppliers of Internet and ASP services claim that no consultations have been made with them in compiling bylaws although you said they were being looked at as a guild and that you should at least have more cooperation with them.
A: We have compiled bylaws for coffee-nets in cooperation with their guild. The secretary of the High Information Council is in contact with them. We are now helping them emerge as an independent guild. Contrary to what some may believe, we look at them (coffee-nets) as our colleagues. We believe that the Internet sector is the biggest job creating center in the private sector.
Q: But some believe that in compiling the bylaws, no attention had been paid to their views and experiences.
A: We cannot release public notices for compilation of each and every bylaw in order to collect the views of others. The views are quite clear. The guild issued a bylaw which we used it temporarily. Moreover, we have proposed to the High Council for Cultural Revolution that the guild be entrusted with the task of issuing permits to applicants. Of course, our proposal has not been approved by the High Council for Cultural Revolution despite being already passed by the High Information Council. We believe that we should render financial assistance to applicants in other Iranian cities. Meanwhile, we are likely to further cut down on the prices in the future. When we are connected to the international fiber optic network in the next few months, the cost price will be much lesser than satellite communications.
Q: It is said that the Microsoft company of the U.S. is to send a satellite to the space in the next one or two months which will enable Internet users throughout the world to get connected to the international network by means of a dish which is much smaller than those used for receiving satellite TV programs. In that case there will be no need for applicants to refer to your ministry for this purpose. What will be your reaction to this?
A: If we can offer better and less expensive services to our customers, they will not need to use satellite.
Q: The radio and television organization (IRIB) had made similar claims about TV programs but in practice something else happened.
A: The IRIB never authorized use of satellite TV channels.
Q: Yes. But people are now using it and this is on the rise.
A: We do not want this to happen again in case of Internet. We believe in the development and promotion of the network and like many other countries we will impose restrictions on its negative points.
Q: Your excellency, Mr. Etemadi, the radio and television organization offered similar reasoning for its drive to confront and compete with satellites but it has not gained any success. Despite increase in the number of IRIB channels, the demands for use of satellites are on the rise.
A: You are trying to forcibly convince us that we will impose restrictions.
Q: Let us not call it restriction but technological progress will prepare the ground for everybody to get connected to the international network without having to refer to your ministry.
A: Everybody can do this if he or she wishes to do so.
Q: What will you do in return?
A: If someone install a two-way satellite dish, we will certainly prevent him or her. Nobody is entitled to have two-way contacts without referring to us. It will be easy for us to control this from technical point of view. If someone embark on installing a two-way antenna, it will be easily detected by our devices and equipment. TV satellite dishes are one-way antenna because they only receive TV waves and this is why they cannot be controlled. Moreover, it is none of our business to control TV satellite dishes. I am in charge of the communications of the country and our policies are the same as the government's. If we want to prevent someone from installing unauthorized two-way antenna, we will certainly do so. Anybody wishing to use it can get a permit from us. We had already made a proposal to this effect.
Q: You mean you have suggested that people can use satellite dishes after referring to you?
A: Not people. Companies can do this. However, I can assure you that people will not do this because in that case the cost price for them will be five times as much the price we are now offering them. Restrictions will be imposed on only commonplace sites. We are sure that no one else will be able to compete with our services. Our motto is 'cheap services with high quality'.
Q: Mr. minister, have you happened to make a call by your mobile and hear this message that 'access is denied'?
A: It makes no difference for a mobile to make a call with someone a meter away or two kilometers away. It by itself cannot establish contact rather it should pass several stages in order to establish contact. Like many other people, I have had such an experience and heard such a message.
Q: What do you think is the reason for mobile subscribers to get different results by changing their positions by a few meters while talking on the phone?
A: There is no doubt that mobile network in Tehran has some problems. Since we started our work in last February, we have increased capacities of Tehran network by between 36 and 61 percent. Based on statistics, we have managed to increase the speed of operation five folds. There have been no flaws in installation of equipment and we have expected the situation to improve since last March.
Q: Why did it not improve?
A: The problem arose from imperfect design. The advisor, we employed, using latest foreign software and existing data on the Tehran mobile network, reached the conclusion that the design had been imperfect. When the plan was launched in 1994, there were some flaws in the system. Of course, the technology and equipment chosen and used were completely up to date in the world at that time. The initial plan was based on 100,000 lines but later the number increased to 300,000 and then to 800,000. There existed no comprehensive plan to this end which could be used as the base for development of the network. No plans were enforced to improve the network either. This has resulted in us not being able to locate proper place for erection of our antennas. The advisor has opined that many of the existing antennas have to be displaced. There are many frequency interventions. The directions of antennas have not be chosen correctly and there are some problems with some network softwares. On the one hand, we are sorry why the initial design was defective and on the other we are glad that we have detected the main problem to a large degree. We have launched efforts to improve the network and our experts are working round the clock in three consecutive working shifts to remove problems. Of course, the problems arising from frequency interventions and redirection of antennas can be solved quickly but relocation of the antennas need more time. Simultaneous with this, we are now busy compiling a comprehensive plan for the Tehran network.
Q: When do you think these problems will be solved?
A: I will announce the exact date after the advisor gives us his final view. In political affairs it is easy to announce a date but in technical and engineering affairs telling the time is the task of experts. However, I guess that the foreign advisor will most probably confirm the domestic advisor's viewpoints. Three months after we receive the advisors' views, we will witness an improvement in the status of the network. Of course, such an improvement will not be one hundred percent but rather fifty percent at least. Afterwards, we will begin accepting new subscribers in accordance with the network capacity.
Q: You mean the prices are artificially high now!
A: No. The real price is what is offered on market. We deliver mobile at a lower price than its market value. No doubt that the prices will go down after new series of mobiles are delivered to applicants. We do not insist at all on keeping the prices stable. We sometimes ask ourselves this question whether our mobile and its related services are cheap or they are expensive compared to other countries of the world. According to a report released by the International Telecommunications Union (ITU), Siemens company of Iran is offering the least expensive services among 75 countries of the world. Of course, some countries either receive advanced payment or receive nothing at all, but their monthly subscription fee is very high. We are going to use two pricing methods for our services in the future, or in other words, we will remove advanced payment requirement but increase subscription fee.
Q: What did happen to the Zohreh satellite project?
A: Discussions on this satellite date back to 1986. Of course, the project has many proponents and opponents. So far we have paid 20 million dollars for renting some points on it. Based on a decision approved by the Majlis and National Security Council, we, too, are in favor of the implementation of the project and we are now passing through its final stages. We have also picked the company that is to put the satellite on the orbit.
Q: What is the name of that company?
A: I cannot reveal its name. It is now at the stage of signing contract. Although we enjoy necessary authorities to finalize the contract, due to the sensitivity of the issue, we have preferred to let the government make the final decision. The contract will probably be finalized this year.
Q: What is the reason for opposition to the project?
A: Some do not consider it to be economical and some experts and members of parliament believe that it has no justification. Of course, the price to which we and the foreign company have agreed is economical. Moreover, the parliament (Majlis) has permitted us to buy at least one of our desired points on the satellite in case the price turn out to be uneconomical.
Q: How much is the final price?
A: Let me not disclose the final price because the contract is in its final stage. We have not even revealed the price for the parliament. However, it is very reasonable and much less than those initially offered.
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