Water Contracts Worth $1b Signed With Private Sector

Tehran, Sept 27, IRNA - The National Water and Wastewater Engineering Company has signed contracts worth $1b with the private sector, said the company’s managing director. Hamid Reza Janbaz added that his company has prioritized the implementation of water projects, noting that $1.15b are required for the projects, which will be procured by holding tenders. “The government is expected to encourage private sector investors to implement the projects by supporting them and guaranteeing their capital return and profitability,” he said. Janbaz added that 6,000 water and wastewater projects are underway, which require the allocation of sufficient credit by the government. “Water supply to 6,400 villages is carried out by tankers. The Energy Ministry has prioritized the completion of 800 water projects to increase drinking water availability index in villages and achieve the figure set by the Fifth Five-Year Economic Development Plan (2010-15). Currently the index amounts to 77 percent,” he said. The official noted that 517 cities suffered from water shortage during March 2013-14, as their water consumption exceeded water production. Janbaz said since 13.7 percent of the country’s water production are wasted due to the dilapidated water transfer networks, the government has provided $218.75 million to renovate them. “Water shortage in Isfahan and Kerman provinces is critical. Tehran also does not have adequate water reserve. In case precipitation increases in fall and Tehrani residents do not modify their consumption patterns, water storage in two of the main dams of the province, namely Lar and Latian, will be depleted, which would be really dangerous,” he said. Ali Asghar Qane’, the deputy head of National Water and Wastewater Engineering Company, said 130 water supply projects are currently underway with a credit outlay of $375m. He said due to the water shortage in hot season, the government has placed completion of 12 large-scale water supply projects on agenda, adding that the government intends to launch a number of incomplete projects in 2015 and 2016. Qane’ stressed that one way to resolve water shortage is by completing the water projects. “The government is devising plans to solve water shortage next year. Drought is expected to continue in Iran for another year,” he said./end