Banks Not Keen on Making Electricity Investments

Financing power projects are not economically viable for banks and they are reluctant to invest in electricity-related initiatives, a member of Tehran Chamber of Commerce, Industries, Mines and Agriculture said.
“The government's huge budget deficit has led to underinvestment in Iran's power development projects and the country will have to face the devastating consequences sooner rather than later,” Alireza Kolahi-Samadi was also quoted as saying by ILNA.
The Energy Ministry is heavily in debt with the private sector power producers and it has not been able to settle its growing unpaid dues over the last 10 years, he added.
The official noted that if the ministry cannot keep its vows to banks and contractors, the whole sector will have to sustain major losses.