The World Bank has approved two IBRD loans ($550 million) for Second Tehran Sewerage and Rural Water Supply projects.
The top UN body approved the funds despite requests by some US officials to stall loans to Iran.
Earlier this year, the president of the World Bank, Robert Zoellick also turned down a private request from US Congressman Mark Kirk, a Republican from Illinois, to suspend the loans. World Bank spokesmen told The New York Sun that the bank will go ahead with the loans.
Washington claims loans undermine recent American and Western moves to exert pressure on Iran.
The neoconservative Bush administration on October 25 imposed sanctions on three of Iran’s largest state-owned banks to make Iran suspend its civilian nuclear program.
Announcing this, managing director of Water and Sewage Engineering Company Majid Namjou stated that WB technical team has approved $250 million in loan for Tehran sewerage and $300 million for a rural water supply project.
Talking to Fars news agency on Sunday, he did not elaborate on the projects.
However, World Bank Monthly Operational Summary for Middle East and North Africa Region in November gave some details on Second Tehran Sewerage.
The objective of the project is to provide (a) satisfactory wastewater collection and treatment facilities for about two million people; (b) treated wastewater for irrigation; (c) capacity building of a wastewater utility; and (d) improved efficiency of operations.
The approval of the loans by the World Bank came after the US daily New York Times quoted an unnamed source on November 7 that the top bank had suspended $5.4 million worth of aid scheduled for projects in Iran because of US financial sanctions against the Islamic state.
“The disbursements to these projects are delayed until the World Bank finds alternative financial institutions to handle the transactions,“ said a senior WB official who spoke on condition of anonymity.
The payments, for four of nine World Bank projects in Iran, were to have been made by Bank Melli Iran, he added.

As per statistics, about 60,000 schools out of 135,000 schools can be connected to the national Internet network.

Close to 3,896 schools nationwide are to be connected to national Internet network today in a ceremony attended by ministers of communications and information technology as well as education.
Once the project is fully implemented, educational and research centers can contribute to generating knowledge and making it available on the Internet. They can also access online scientific resources, Fars news agency wrote.
The project began with the connection of the first school, Nikan High School in Tehran, to the network. After a lapse of one year, it has become possible for 3,896 schools and education departments nationwide to be linked to the network.
Communications Ministry took the responsibility of connecting 567 schools to the network and facilitating connection for 400 others in Tehran using their own resources at a cost of 35 billion rials. As per statistics, about 60,000 schools out of 135,000 schools can be connected to the network.
It has been decided that about 50,000 schools nationwide would be connected to the network by the end of Fourth Five-Year Economic Development Plan (2005-2010). However this will happen once the government provides the budget.
Minister of Communications and Information Technology Mohammad Soleimani said last May that the cabinet has approved the plan for setting up a national Internet network.
Soleimani noted that the cabinet authorized Telecommunications Company of Iran (TCI) to spend 5,660 billion rials to establish the network within three years, IRNA reported.
“Efforts to design the national Internet network have proven useful and components for the project are in place,“ he said.
Secretary of the High Council of Information Technology, Abdolmajid Riyazi, said in March that if the budget for the national network is allocated on time and its implementation faces no problem, the project will be complete by March 2010.
He further said President Mahmoud Ahmadinejad believes the national Internet network should become operational by the end of the incumbent government’s tenure. “In order to meet all the requirements and demands of cities and villages, the national Internet network needs a budget of 10,000 billion rials,“ he said.

Motorists consumed 59.3 million liters of petrol everyday during October 23-November 2.

Gasoline imports declined by 50 percent during March 21-October 22 compared to figures for the same period last year, said deputy head of Trade Promotion Organization of Iran.
Ali Houshmandi was quoted by hamshahrionline.ir as saying that over 2.4 million tons of gasoline, worth more than $1.47 billion, were imported during the same seven months.
The official recalled that gasoline imports for March 21-Oct. 22, 2006 stood at over 4.41 million tons. Imports of this volume of gasoline cost three billion dollars for the country, he concluded.
Meanwhile, National Iranian Oil Refining and Distribution Company earlier reported that gasoline consumption reached 59.34 million liters per day during October 23-November 2.
Iranian motorists consumed 74.6 million liters of gasoline per day during the same period last year.
Iran began a rationing gasoline plan from June 22 and the Oil Ministry has allocated each private car 100 liters per month at about 10 cents per liter.
Under the plan, gasoline is only supplied through smart card, an initiative taken by President Mahmoud Ahmadinejad to stop lavish fuel consumption by over seven million cars nationwide. Gasoline rationing would help the government save over three billion dollars until March. Though, OPEC’s second oil producer, Iran has spent billions on gasoline imports.

Everybody in this country wants to have a roof over his/her head. For most Iranians, it makes no difference whether they live in big or small places, in or out of the city; they just want to own a house. In the past 15 years, the winners in the real estate market have been those who have purchased a house.
Statistics show that prices of houses have experienced a spiraling pattern since 1982. Housing price fell by Ð2.5 percent in 1982, while the figure rose by 67.3 percent in 1996. Following a sharp drop in 1997-98, it increased again to 50.4 percent in 2002. In view of the hike, it was not unexpected to see housing prices to skyrocket during last and current year.
Majlis and the government have so far adopted numerous plans to regulate prices and make it balanced. In line with this, the parliament recently ratified a bill to support builders. The document backs industrial housing construction and calls for making use of modern technologies in construction.
Industrial housing construction would reduce the duration of projects. This would be effective in increasing supply and creating a balance in demand and supply.
Talking to the Persian daily ’Iran’, rapporteur of the Majlis Development Commission elaborated that the bill had been studied at length by commissioners and representatives of the Ministry of Housing and Urban Development.
Vali Azarvash contended that the new regulation would help improve the housing market in quality and quantity, support domestic investors and regulate prices.

Private Sector
The most important issue in the document is the role of private sector in price fluctuation. Experts maintain some 70 percent of changes in housing market are attributed to decisions taken by the private sector and the state plays a less-than-30-percent role.
Chairman of Tehran Real Estate Dealers’ Association Mostafa Qoli Khosravi said that his peers are concerned about stagnation in the housing market in recent months and have urged for a strategy to put an end to it.
He noted that high price has led to the registration of just one transaction per month in each real estate agency.
“Housing market will thrive if prices are brought down,“ Qoli Khosravi observed, suggesting renovation of dilapidated houses and construction of new residential units using modern urban planning to make the market lively.

Land Prices
Land is one of the fundamental factors in determining the price of residential units. Constructing houses using industrial and modern methods can help regulate prices. Meanwhile, construction of high-rises rather than multi-storey apartments can meet the demand better. The government as the major policy maker should support and supervise housing constructions while refraining from direct involvement.
Touching on a plan by the Housing Ministry to provide land for builders on 99-year lease, Qoli Khosravi stated that the initiative can help regulate the market if successfully implemented.
The plan to lease land to housing cooperatives began in March. Under the plan, price of land will be eliminated from construction costs. Banks will also extend soft loans to reduce costs.
He predicted that lingering stagnation in the coming months would make sellers reduce prices.
The administration can support cooperatives to resolve the price dilemma. Housing cooperatives were earlier unable to solve the problem due to high land prices. With the implementation of 99-year land lease program by the government, it is hoped the role of cooperatives in building residential units would increase thus regulating the market.
Unless new state policies bear fruits, there would be no solution to the country’s housing problem.

Age-old ties between Iran and Sri Lanka can pave the way for developing economic relations, observed visiting Sri Lankan tourism minister.
Milinda Moragoda, in a meeting with Commerce Minister Massoud Mir-Kazemi, underlined that his country places great importance to promoting economical cooperation with Iran, according to a fax sent to Iran Daily by Public Relations Office of the Commerce Ministry.
Highlighting that joint meetings can help develop ties, he said that Sri Lanka imports 70 percent of its oil from Iran while the Islamic Republic is one of the major customers of Lankan tea.
He also urged Iran to help his country develop the irrigation system, construct power plants in the south of Sri Lanka and establish refineries.
Mir-Kazemi, for his part, said that Iran is interested in expanding relations with Sri Lanka noting that the conditions should be prepared for private sector investment and participation in Sri Lankan projects.
Underlining that the projects should be discussed and studied in several sessions at Trade Promotion Organization of Iran (TPOI), he said that once the procedure for investment by Iranian companies is specified, investors could be encouraged to take part in Sri Lankan projects.
At the same meeting, Sri Lanka’s deputy minister for economic reforms gave a comprehensive report on steps taken so far for investment by Iranian companies in his country’s development projects. The official called for expediting talks particularly with Export Development Bank of Iran in this respect.
In Feb. 2005, MAPNA, a government-owned Iranian company agreed to conduct a feasibility study on the first liquefied natural gas (LNG) fired power plant to be constructed in Mirissa, Sri Lanka’s Power and Energy Ministry said. Iranian delegation following discussions with Sri Lanka Power and Energy Minister W. D. J. Seneviratne agreed to conduct the feasibility study, Dailynews.lk reported.
Seneviratne said that both governments would reach an agreement for the supply of LNG for a 20-year period.
The minister expressed confidence that the construction of the jetty and related infrastructure for LNG operations would create around 1,000 direct employments.

Iranian pistachio is among the best in the world.

Iran ranks first in the world in pistachio production with 54 percent of the total global output, said director general of Export and Service Promotion Bureau of Trade Promotion Organization of Iran on Sunday.
According to a report released by the Public Relations Department of Commerce Ministry, Mehrdad Jalalipour stated that some 53,000 tons of pistachio, worth of $348 million, were exported during March-September this year.
Referring the growing trend in pistachio exports, he contended that the rise is due to some developments in East Asia and Hong Kong markets.
Although, Iranian pistachio is among the best in the world, disorder in domestic market has worried pistachio growers and led to a decline in pistachio production in recent years. The output which once stood at one million tons annually has dropped to 300,000 tons.
This is while, US, which is Iran’s main rival in pistachio production, has achieved a production growth of over 160,000 tons per year.
In Iran, some 440,000 hectares are under pistachio cultivation making it among the highest area for cultivating horticultural products.
Meanwhile, agricultural jihad minister said that the government is committed to purchasing pistachio and providing facilities to pistachio growers and cooperatives.
Mohammadreza Eskandari stated that a base price of 43,000 rials per kilogram has been set for high-quality pistachio cultivated in provinces such as Kerman which accounts for 70 percent of domestic production. He said that the currently a number of entities such as rural cooperatives and small-scale exporters buy the crop from farmers at lower price and export to global market.

Managing Director of Bourse Company Ali Rahmani unveiled a plan to establish an international stock exchange on the Persian Gulf island of Kish.
Rahmani told MNA Sunday that between 40 and 50 companies in Tehran Stock Exchange would be transferred to Kish bourse, once established.
Stressing that a dynamic capital market is a necessity for establishing such a bourse, the official noted that between 15 and 20 percent of shares of the companies would be offered at Kish bourse.
He added that transactions in this stock exchange would be conducted in foreign currencies and ’the bourse is preferably for foreign stock buyers’.
Referring to legal barriers to the plan, Rahmani said that his company is negotiating with the Secretariat of the High Council for Free Trade Zones to adopt required rules.
“There are rules for banking activities in these areas but no regulations to govern the capital market,“ he elaborated.
Iranian economic policy-makers and banking officials have planned to rejuvenate the capital market in a bid to attract huge sums of idle capital into stock exchanges.