At least 3% of petroleum revenues should be earmarked for expanding infrastructure in oil-producing provinces namely Khuzestan and Bushehr, but in practice much less has been allocated to these regions in the last 40 years, the oil minister said.
“We are calling for legislation to allocate a bigger proportion of oil revenues for infrastructure development in these provinces or else they will continue to lag behind forever,” Bijan Namdar Zanganeh was quoted as saying by ISNA.
Investments have been made in Khuzestan over the past decades but apparently are not enough. The oil-rich region has been grappling with insurmountable problems, especially in water, wastewater and power sectors, he concurred.
Dismissing unfounded claims that some provinces including Isfahan receive more petrodollars, he noted that funds disbursed for Khuzestan in south Iran has been more than central provinces, but the oil-rich region is half as developed as other areas due to numerous problems.
“In addition to being deprived of oil revenues since 1979 (victory of the revolution), the province is saddled with mismanagement and ethnic issues,” he said.
Regional managers have always given priority to human resources from among their own ethnic groups, although there may have been others more eligible and qualified, he noted.
“Such discriminatory practices are detrimental to the key oil sector and the economy at large.”
Khuzestan has the third-highest rate of unemployment in Iran and locals have long complained that they do not benefit from the region’s enormous natural wealth.
In Khuzestan, ethnic Arabs, making up about 3% of the 82 million population, have long protested social, political, and economic discrimination.
“Development of oil fields has not been compatible with urban and rural expansion. Real investment is needed to help the people [locals] and their businesses prosper.”
Zanganeh expressed the hope that completion of petrochemical projects in Sousangerd, Masjed-Soleiman and Andimeshk counties can help improve the unacceptable conditions in the underprivileged areas left behind.
Water Supply
According to the minister and local authorities, around 700 small towns and villages in the oil-rich region face water problems, especially in summer when people are forced to remain indoors as the mercury hovers around 55 degrees Celsius.
Khuzestan is home to the largest oil and gas fields in Iran along with steel companies, but the dole queues keep getting bigger in the area. The Karoun and Maroun oil and gas companies, the National Iranian Drilling Company, Maroun and Razi Petrochemical Companies and Khuzestan Steel Company are the energy behemoths but have failed to shoulder their social responsibilities.
As if the water crisis was not enough, residents in the southwestern province bear the brunt of recurring dust storms that have increased in both frequency and intensity in recent years.
Local residents say the Department of Environment has done little to nothing because it “lacks the necessary political will and financial clout.”
They also point the finger of blame at the Energy Ministry whose affection for dam construction and controversial water schemes has dried up rivers and wetlands in the arid region turning it into barren land and contributing terribly to the dust storms. Similar dire conditions have often been reported in the southern Bushehr Province.
Air Pollution
In related news, ISNA quoted Abdolhamid Hamzehpour, managing director of Bushehr Water and Wastewater Company, as saying that despite the huge oil and gas resources in Asalouyeh County in Bushehr Province, locals suffer from major problems, namely water shortages and air pollution.
“For years water in summer is rationed in Asalouyeh’s rural districts including Chah-e-Mobarak, Nakhl Taghi, Sahmui-ye-Shomali and Nayband,” Hamzehpour said.
The 80,000 Asalouyeh residents have limited access to potable water during the day and in some areas piped water is cut for days together and people are forced to buy bottled water.
Located in southwestern Iran, the arid province is one of the most water-stressed regions. Rural folks told the news agency that they are forced to spend $30 a month only for water -- 30% of the average monthly salary.
Asalouyeh is home to expansive gas production and processing facilities such as South Pars, the world's largest gas field. However, locals are deprived of basic needs like clean air and water.
