Iran Hold Tender for Privatizing 100 Gas Stations

Iran Hold Tender for Privatizing 100 Gas StationsIran Hold Tender for Privatizing 100 Gas Stations

The Iranian Privatization Organization on Monday held a tender for 100 gas stations in one of the initiatives for the country's largest privatization process.

“The tender is estimated to be worth over $112 million,” Seyyed Jafar Sobhani, IPO’s advisor, was quoted as saying by IRNA on Tuesday.

Sobhani said the tendering process was held for 100 gas stations in 25 provinces, adding that except for West Azarbaijan, Alborz and Kohgilouyeh-Boyerahmad, there was high competition for gas stations in 22 other provinces. He did not say if there were foreign companies among the bidders.

“Some 70% of the stations had more than one bidder in the tender and on average more than three participants bid for each station,” he said.

According to the official, the main reason behind the striking reception for the tender was the 10% reduction in down payment requirement.

“The down payment for the past tenders was 40% of the total sum, but it was reduced to 30% for the gas station tenders,” he said.

Winners will be required to pay installments over the next two to four years. IPO is expected to announce the winners within two weeks.