Energy Ministry Owes $11b

Energy Ministry Owes $11bEnergy Ministry Owes $11b

Although Ministry of Energy has settled most of its debts, it still owes $11 billion to other sectors.

"A considerable amount of debts have been cleared. However, the ministry still owes the private sector about $11 billion, which has caused many problems for some companies," said the chairman of Iranian Electrical Industry Syndicate, Shana reported.

Alireza Kolahi added that most members of the syndicate are working at a loss and the government is expected to adopt a new approach in signing contracts to support the private sector.

"Financial problems pose a major obstacle to Iranian contractors and manufacturers. They are qualified not only to work on domestic projects, but also to compete for international tenders," he said.

"While much of the ministry's debts to major companies has been cleared through barter deals, other companies with credit lines under $3 million are experiencing great difficulties. However, we hope the ministry will clear these debts soon."

The chairman of IEIS claimed members of the syndicate have strong infrastructures, are capable of exporting technical services and manage a large portion of the country's non-fossil exports to increase Iran's share in the international market.

Kolahi also said the export of electrical equipments can bring in much revenue and requires the government's strong support.

 "Members of the syndicate are ready to support the Ministry of Energy by overcoming the challenges of developing water and electricity industries," he said.