Kurdestan Gas Company Awaiting Funds

Gas projects in western Kurdestan Province are awaiting funds and if the money is not available expansion of the gas network to rural areas will be suspended, the managing director of Kurdestan Province Gas Company said.
According to Iran Energy News Agency, funding for the sector does not come from the general budget for the province, but from billing for gas supply to consumers, Ahmad Falehgari said.
“In addition to machinery and equipment, each project requires special human resources and land acquisition that cost a lot. The money paid by the consumers for the gas they consume goes to the treasury first and part of it is later allocated to expansion and other projects,” he said.
The official rued that Kurdestan Gas Company has still not yet received $4.8 million of its last year’s share from consumers. “The payment delay has undermined the company’s development projects.”
So far 1,173 villages in the province are connected to the gas grid. “If the funds are available on time 200 more villages will be linked to the national gas network by next year,” he was quoted as saying.