Thirteen wastewater treatment plant construction projects in Tehran require $280 million in foreign direct investment for completion, deputy of Tehran Province Water and Wastewater Company said on Tuesday.
Alireza Nozaripour made the statement on the sidelines of the International Forum on Economic Development and Investment Opportunities in Tehran, ILNA reported.
The official said investment is vital, as the Iranian capital is facing severe shortage of water resources. Iran’s average annual rainfall is around 250 millimeters with Tehran receiving roughly 235 mm. Plans call for attracting foreign investment for these projects in the form of buyback contracts with a 25-year period for return on investment.
A buyback is a form of borrowing in which shares or bonds are sold under an agreement to repurchase them at a later date.
"According to the budget plan for the current Iranian year (ending March 2016), water and wastewater companies are required to promote their treatment facilities by selling wastewater from their plants," Nozaripour said.
The official added that 1.35 billion cubic meters of water are harnessed annually in Tehran and the company plans to sell nearly 800 million cubic meters as treated wastewater by attracting foreign investment.
According to Nozaripour, generating clean energy is another goal, in addition to expanding wastewater treatment installations.
The wastewater treatment plant in the south of Tehran, which treats 8 cubic meters of water per second, is currently generating 5 megawatts of electricity and this figure is expected to rise to 7 MW, thanks to foreign investment.
Earlier in August, President Hassan Rouhani inaugurated a project to supply Shahid Mofatteh Power Plant with wastewater from Hamedan, the advantages of which include conservation of underground water resources, power supply during peak hours and water storage for crisis situations.
