TEHRAN – Iranian Deputy Transport and Urban Development Minister said the ministry is going to award the completion, construction, and implementation of five major highway projects across the country to the private sector, IRIB reported.

"To strengthen the presence of the private sector in the implementation of development projects in the country, the ministry will award the private sector some of its important highway development projects that play an important role in facilitating and reducing traffic in four important cities,” Amir-Mahmoud Ghaffari said.

According to Ghaffari, a working group comprised of Planning and Budget Organization (PBO), the Ministry of Justice, the Finance and Economic Affairs Ministry, the Ministry of Transport and Urban Development, and Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), has already reviewed and approved the plans for awarding the mentioned projects.

“The call for contractors and investors for the mentioned projects will be published in the mass media soon,” the official said.

According to the deputy minister, the said projects are going to be awarded to eligible candidates under the framework of build–operate–transfer (BOT) deals, based on which a part of the required capital is granted by the government to the approved company and the rest is provided by the contractor.

Considering the significant decline of the country’s oil revenues, the Iranian government has been following new strategies for financing the country’s infrastructure projects.

Encouraging the private sector for contribution to the development projects has been one of the major policies that the government has been pursuing in this regard.

Therefore, the capable private sector has been participating in major development projects in a variety of sectors including oil and gas, electricity, petrochemicals and finally transportation.

EF/MA