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Sat, Apr 19, 2008

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Software Exports
Opportunities & Challenges
Compiled by Leila Eimani
Road Transit Expanding
Zarshouran Gold Exploration Deal Signed
IPI Pipeline
Two-Way Accord Likely
Telecom Deal Inked With China
5 New Power Lines Planned

Software Exports
Opportunities & Challenges
Compiled by Leila Eimani
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State support is a prerequisite for improving the quality of Iranian software products and gaining a foothold in international market.
Many developing and transitional economies have become involved in software exports as the large and expanding markets for most types of software and IT service continue to grow.
Countries are using diverse strategies and approaches to tap this global market. Policymakers and software companies in Iran are no exception. They are keen to explore the potentials of global software exports and at the same time develop the domestic industry.
Iran is developing its capacity to meet its large demand and at the same time to become internationally competitive. The software sector itself, although strong in some areas, has not yet managed to become internationally competitive.
Chairman of Software Exporters Union Fereidoun Entezari said early this year that some software programs designed by Iranian engineers are successfully being executed in countries in Europe, the Americas, Central Asia and Persian Gulf as well as Afghanistan.
He called on the government to back software producers and exporters by implementing the law on supporting software designers, improving quality of exported products, giving incentives to exporters and establishing a fund to guarantee software export.
Many experts and software exporters believe that a number of problems hinder the export of $1 billion worth of software. For instance no price has been set for software products. Also lack of knowledge prevents banks from granting loans to exporters and software produced in Iran is not well-known in the global market. Political problems pose yet another challenge to the sector.
An assessment of the performance of software exporters in the Iranian year to March 2008 indicate that state support is a prerequisite for improving the quality of software products and gaining a foothold in international market.
Deputy Chairman of Software Exporters Union Mohammad Reza Talaei told ISNA that failure to draw investment is among the main problems facing the sector. He added that the failure to observe the Copyright Law prevents overseas companies from investing in Iran’s software industry.
He hoped that Culture and Islamic Guidance Ministry would resolve the problem by drawing up a program to inform foreign investors about the law on supporting software producers.
According to him, banks, which do not have enough knowledge about IT industry, are unwilling to cooperate with software exporters.
Managing director of Software Export Development and Research Consortium stated that a large number of infrastructures should be prepared for meeting the target of exporting of $1 billion worth of software products.
Mehrdad Zolghadrian said that improving the capabilities of IT companies can help exporters achieve this.
He contended that specialized institutes should be formed to study conditions in target markets and draw up a comprehensive mid-term scheme for achieve the objectives.
A member of the union Gholamreza Zarin also said that better marketing strategies should be adopted for software export which does not require much investment.
He said that although marketing on non-software products is easy, it needs huge investment.
Zarin stated that companies producing high quality software should form a partnership with foreign companies, adding this will help them sell and purchase software products more easily.

Road Transit Expanding
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Transit of goods by road will increase by 20 percent in the year to March 2009, head of Road Maintenance and Transport Organization, Mohammad Bokharaei said.
He told ISNA that efforts are underway to upgrade the potentials of the transport sector in field of transit and introduce the capabilities in the international arena. Based on this, he added, Iran Transit Forum was held in July 2007 and agreements were signed with 15 countries.
Bokharaei hoped that the transit sector would develop further and the objectives would be materialized in cooperation with Iran’s Customs Administration and other organizations.
Roads and Transportation Minister Mohammad Rahmati said in the opening ceremony of Iran Transit Forum that trade has gone up in the past two decades with the creation of new national and regional markets.
He added that economic development in Asia, Europe and Africa has also played a key role in increasing commercial transactions between East and West.

Zarshouran Gold Exploration Deal Signed
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Iran Minerals Production and Procurement Company and the winner of the tender to exploit Zarshouran mine, Pars Kani Company, have signed an agreement to construct a factory for producing gold from ore extracted from the mine.
Speaking at the signing ceremony, managing director of Iran Minerals Production and Procurement Company said that the gold and silver reserves of Zarshouran mine near the northwestern city of Takab, West Azarbaijan, are valued at one trillion rials, reported ISNA.
Highlighting that the factory would produce three tons and 10 kilograms of pure gold annually and daily respectively, Ardeshir Sa’d-Mohammadi said the factory would operate at 85 percent efficiency. “Also, the factory would produce 1.27 tons of silver and 800 kilograms of mercury per year.“

IPI Pipeline
Two-Way Accord Likely
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Iran and Pakistan are likely to sign the gas pipeline project by April 25 even if India chooses to stay away for the time being.
“If India does not want to immediately join in the agreement, it could do so afterwards. We will sign it bilaterally for the time being,“ an unnamed Pakistani official told the Post.
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The IPI gas pipeline is crucial for New Delhi as after signing of the agreement, 60 million standard cubic meters per day of gas is expected to be supplied in phase-I, which will be shared equally between India and Pakistan.
He said the elected government wanted to complete the project soon in view of the increasing demand for gas and a draft had also been prepared in this respect. “India can always join us. We are not excluding it. We in fact want them to sign it with us,“ the official said.
Pakistani Petroleum Ministry officials have said that Sui Southern and Sui Northern gas pipeline companies had agreed on a joint venture for the project and the government has been briefed about that financial institutions within and outside the country which were ready to provide funds for laying the pipelines.
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Indian Petroleum Minister Murli Deora is likely to visit Islamabad this month to resolve the issues relating to the $7.4 billion gas pipeline project, especially the issue of transit fee. However, the United States is pressing India not to enter into the deal.
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Last Wednesday, Federal Minister for Petroleum and Natural Resources Khawaja Mohammad Asif said that Pakistan was fully committed to providing transit facility to India, adding that there should be no further delay in the realization of the project which would help meet energy shortfall in both the countries.
The minister was talking to Indian High Commissioner Satyabrata Pal who called on him in Islamabad to discuss matters of mutual interest.
They discussed the upcoming visit of the Indian petroleum minister to Pakistan on April 21 for steering committee meeting on TAPI (Turkmenistan-Afghanistan-Pakistan-India) and discussion on transit fee for IPI project. The minister said that Pakistan was interested in both IPI and TAPI gas pipeline projects.
Meanwhile, India voiced deep enthusiasm for resolving differences with Pakistan on the project.
“We have two-three small differences on transit fees. But I am very optimist we can sort out the problems,“ India’s Petroleum Minister Deora said ahead of his visit to Pakistan to discuss the IPI pipeline.
Deora will hold talks with his Pakistani counterpart over the multi-billion-dollar project on April 21 in Islamabad. A technical team is headed for the Pakistani capital today, Saturday, to discuss the long-awaited gas project.
He earlier said that there would be a meeting among representatives of India, Iran and Pakistan on the gas project, also known as the Peace Pipeline, on April 21.
The countries held tripartite negotiations on the project until recently, but New Delhi’s vacillation made Tehran and Islamabad determined to continue talks bilaterally. Iran and Pakistan have almost finalized the deal.
Earlier, a meeting between the two countries was postponed in February because of general elections in Pakistan.
According to Indian ministry sources, the IPI gas pipeline is crucial for New Delhi as after signing of the agreement, 60 million standard cubic meters per day (mmscmd) of gas is expected to be supplied in phase-I, which will be shared equally between India and Pakistan.
Talks are more likely to progress after Pakistan elected Yusuf Raza Gilani as its new prime minister last week, ending six months of political instability that culminated with the suspension of the constitution in November and the assassination of former prime minister Benazir Bhutto in December.
Iran, which has the world’s second-largest oil and natural gas reserves, agreed to sell gas to India in 1995.

Telecom Deal Inked With China
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A memorandum of understanding on training cooperation was signed by Telecommunication Company of Iran (TCI) and Chinese Hua-wy Company.
At the signing ceremony, head of TCI, Saber Feyzi said the aim of the MoU is to transfer know-how and conduct joint training programs with the Chinese telecommunication company.
Feyzi told IRNA, “Telecommunication college in Isfahan is an international center and Hua-wy company is also a well-known company in the field of telecommunication.“
On the Regional Training Center, Dean of TCI College Gholamali Hassani Sadr said, “The center will meet the educational needs of the TCI as well as Asia-Pacific telecommunication companies and those who have bought equipment from Hua-wy company.

5 New Power Lines Planned
Construction of five 400-kilovolt power transmission lines will start soon in the southwest of the country, said executive head of Iran Electricity Development Organization (IEDO).
Ebrahim Khalil-Laleh told MNA that the projects include Karoun 3-Karoun 4, Karoun 4-Lordegan, Lordegan-Yasouj, Asalouyeh-Fasa as well as the Damavand power plant.
Highlighting that the lines will extend 433 kilometers, he predicted that the projects will go on stream in the year to March 2010.
He recalled that about 480 kilometers of 400 kilovolt power transmission lines including Masjed Soleiman-Ahvaz 2, Abadan-Shalamcheh, Ardebil-Imishli and Mashhad-Sarakhs projects were inaugurated in the year to March 19.
Also executive operations of several 400 kilovolt power transmission lines began in 2006 and 2007, he said. He listed them as Yasouj-Chenar Shahijan, Yasouj-Sourmaq, Gotvand-Shazand, Gotvand-Ahvaz 4, Ahar-Megri, Megri-Jolfa and Jolfa-Khoy projects.

Caretaker
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Following the resignation of Davoud Danesh-Jafari, minister of economic affairs and finance, Hossein Samsami, will take the helm as the ministry’s acting head from Saturday.

Ministry Merger
Labor Ministry and Social Security Ministry are to be merged in the near future. Labor Minister Mohammad Jahromi will be in charge of the new ministry.

EconomyCol2
Days of Sanctions Over
Oil minister says sanctions do not undermine the oil industry as foreign companies are still investing.
“Sanctions and threats belong to the past, are dull and ineffective instruments which belong to the 1950s and the 1960s,“ Gholamhossein Nozari said in a press conference on Wednesday after attending the inauguration of the 13th International Oil, Gas, and Petrochemical Exhibition in Tehran.
“More than 500 foreign companies are participating in this year’s exhibition which indicates sanctions have turned into opportunities for Iran,“ he said, adding that the country has signed major energy contracts in the past two years.
According to IRNA, a $2-billion agreement with China’s biggest refiner, Sinopec and a $16-billion contract with Malaysia’s SKS are among the deals Iran signed with foreign companies last year.
Nozari further said Total of France should clarify its stance by June 20 at the latest if it seeks to cooperate in Phase 11 of South Pars development project.

Swedish Road Safety Experts in N. Khorasan
Head of North Khorasan Transportation and Terminals Organization has said a group of Swedish road safety experts is in the province to study road safety projects.
Hamid Reza Shahraki-Sani told IRNA that experts from Swedish company ’Swe Road’ examined the roads in the province to help implement safety plans.
He added, “The company has also signed contracts with the Ministry of Roads and Transportation for six other provinces.“
Some 27,000 lives are lost annually in road accidents in Iran, which is among the highest in the world.
Head of the Swedish group, Fillip Jordan said the program for road safety includes training manpower, eliminating accident prone points, considering the impacts of penalties on lowering road accidents, conducting technical examination of vehicles, training drivers, and setting up smart control systems for the roads.

Qom Petrochem Complex Inaugurated
Qom Petrochemical Complex was inaugurated on Wednesday concurrent with President Mahmoud Ahmadinejad’s visit to the province.
According to ISNA, at the inaugural ceremony, the deputy minister of industries and mines for legal, parliamentary and provincial affairs said the government has launched many programs to support industries and industrial workers.
Mohammad Reza Majidi cited industrial development, job creation and public welfare as the main goals of the government.
He said that lack of coordination among banks is one of the problems facing industrial workers, adding the government has decided to resolve this.
“To remove the problems, we are trying to promote interaction and relations among executive bodies,“ Majidi said.
The complex will produce paints and metallic anidirid under the supervision of the petrochemical industry, he added.

IK Turkey an Export Base
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Iran’s auto manufacturing giant, Iran Khodro company (IK), will reportedly build a factory in Marmara region in northwestern Turkey.
“The factory is expected to be operational as of 2009,“ MYS Otomotiv manager, Yigit Seskir said in an exclusive interview with Automobile Association. According to IK distributor for Turkey, exports to Russia, Ukraine, Bulgaria and Romania will take place from this factory as soon as it opens. It will reportedly produce models, such as Samand and Soren.
“IK’s new factory is expected to help the company earn revenues of $300 million,“ Seskir added. “The factory will employ 1,000 Turkish workers.“
In the past two years, IK has invested heavily in Azerbaijan, Argentine, Belarus and Syria. Seskir says IK has sold over 1,600 ’Samand’ model automobiles since the beginning of 2008. The Samand is built on the Peugeot 405 platform, using the ’XU7JP/L3’ engine amongst others. The Peugeot 405 is also in production in Iran, along with a face-lifted version, the Peugeot Pars.

Oil Business as Usual
Iran has a special position in world’s oil industry, an energy analyst with International Energy Research Center said Friday.
“It is important first of all from the oil industry point of view because, with the production of more than 4 million bpd, Iran is an oil-producing country which cannot be overlooked by any company--sellers of equipment, service providers and so on,“ Manouchehr Takin, a senior petroleum upstream analyst with the Center for Global Energy Studies in London, told The Media Line.
“From the political point of view, I think the fact that politics have not hindered or stopped the international oil exhibition in Tehran is significant. This means that business takes priority over politics,“ added Takin.
American oil companies are taking part in Iran’s 13th International Oil, Gas and Petrochemical Exhibition.
A total of 860 domestic companies and 505 foreign companies are participating in the event, including companies from the US, England, Japan and Canada, exhibition manager, Mohsen Aghajani told the media.
“Coinciding with the centenary of Iran’s oil industry, the five-day exhibition opened Wednesday,“ added Aghajani.
Iranian officials underlined that the participation of foreign companies from 30 countries is proving their opposition to the American sanctions.

New Gas Field Found
A senior Iranian oil official has announced the discovery of a new gas field near Masjed Soleiman in Khuzestan province.
Director for exploration at the National Iranian Oil Company (NIOC), Mahmoud Mohaddes told IRNA on the sidelines of the 13th International Oil, Gas and Petrochemical Exhibition in Tehran that technical studies conducted about 30 kilometers southeast of Masjed Soleiman have revealed a sour gas reserve at Asmari mountain.
He pointed out that a total of 150 million bpd of sour gas can be exploited from the Asmari gas field in Masjed Soleiman.
Mohaddes further noted that NIOC will also invest a total of 12 million euros on exploration operations in North Khorasan and Golestan provinces.
The 13th International Oil, Gas and Petrochemicals Exhibition, sponsored by the Oil Ministry, opened on April 16 and will run until the 20th in Tehran International Fairground.

Fishery Meet Ends
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Representative of the United Nations Food and Agriculture Organization for the Near East region said on Wednesday that Iran is the most important member of the Regional Commission for Fisheries in the Persian Gulf and Oman Sea regions.
Iran plays a key role in developing fisheries in the Near East, Piero Manini told IRNA on the sidelines of a regional training workshop.
Holding regional training workshops would provide a great opportunity for scientific development of fisheries and for this reason FAO has planned to hold training workshops in regional countries, he said.
He added that Iran has considerable potentials in the field of fisheries. More than 40 managers and experts on fisheries from Iran, Kuwait, Saudi Arabia, UAE and Oman are attending the workshop.