Tehran Province Water and Wastewater Company (TPWWC) requires $263 million in credit to cover the difference between the real and subsidized prices of water and wastewater services, the engineering, social and engineering department at the TPWWC said, IRNA reported.
Javad Hajiani Bushehrian highlighted the $41 million budget of the TPWWC in the present Iranian calendar year (ending March 2015) as "insufficient" and said the company's expenses are estimated at $263 million for next year.
"We have plans to attract private investors, but to do so, tariffs must be revised or more credit must be allocated to the TPWWC."
The current urban tariff system is based on a fixed fee that depends on the size of the connection pipe and the type of customer (household or other types), and on a volumetric charge based on increasing block-tariffs.
The budget is a serious hurdle against attracting investors, he noted.
TPWWC aims to raise funds by calling for public investment, attracting private investors and foreign finance.
The energy minister Hamid Chitchian proposed hikes in the price of water and electricity last October.
"Because of the substantial gap between the cost price of water and electricity and the revenues generated from the sale of power and water, the industry is facing problems."
Close to 3,000 water and wastewater projects have been carried out by the private sector in the provinces.
