EGFI Urged to Raise Funds

EGFI Urged to Raise Funds
EGFI Urged to Raise Funds

The Export Guarantee Fund of Iran (EGFI) should increase the funding of projects and make revisions to its interest rates and repayment schedules, a deputy energy minister said, ILNA reported Monday.

"EGFI should prevent the sale of raw material [on the cheap] by promoting the export of technical and engineering services," Esmaeil Mahsouli said on the sidelines of the 14th Iran International Electricity Exhibition in Tehran.

Criticizing the EGFI's approach, he said that the company has suggested the cancellation of some projects instead of increasing its funds. "It is sidestepping the question."

Established in 1973, the EGFI is a state-owned export credit insurance company affiliated to the ministry of industry, mine, and trade. It seeks to promote exports by providing insurance policies to cover major risks involved in exports, and offers credit guarantee to help exporters meet their financial requirements. Several water and electricity projects need $500 million investment or more, funding of which should come from the EGFI.

Export of water and electricity services is estimated at $4.3 billion under 85 projects to more than 20 countries, according to Mahsouli. Approximately $2.5 billion worth of water and electricity contracts are close to be finalized and $1.6 billion worth of projects have been completed.

"We were among the top two exporters of technical and engineering services from 2011 to 2013 in Iran," he noted.

According to a Trade Promotion Organization (TPO) report, 52 and 35 percent of technical and engineering services exports in 2012 and 2013 belonged to the water and electricity sector. The volume reached 92 percent in the March-July period this year. Ethiopia, Azerbaijan, Turkmenistan, Sri Lanka, Iraq, Syria and Afghanistan are among major importers of water and electricity services from Iran.

Additionally, Iran builds thermal, hydroelectric and renewables power plants in several Middle Eastern and African Countries.