In accordance with FIPPA and its Implementing Regulations, the partnership ratio of foreign investor in Iran is not restricted to the 49 percent ceiling.

The government has assigned some of the responsibilities of the Center for Foreign Investment Services to provincial economic and finance departments. The move is aimed at channeling foreign investments directly to the provinces as part of the decentralization process, Nourlaw.com reported.
According to Article 16 of Implementing Regulations of the Foreign Investment Promotion and Protection Act (FIPPA), the Center for Foreign Investment Services was set up at the Organization for Investment, Economic and Technical Assistance (OIETA) in Tehran. As set out in Article 20 of the Implementing Regulations, the functions of the Center for Foreign Investment Services are to:
1. Provide information and advice to foreign investors.
2. Coordinate matters related to obtaining necessary permits, including, but not limited to, the declaration of establishment, the permission of the Department of the Environment, permissions for water, electricity, gas and telephone connections, exploration and exploitation permits for mines, etc. from relevant agencies prior to the issuance of investment permits.
3. Coordinate matters related to the issuance of visas, residence and work permits for individuals involved in foreign ventures.
4. Coordinate affairs related to foreign investment following the issuance of investment permits including registration of a joint venture company, registration of orders, and issues related to import and repatriation of capital as well as customs and tax affairs.
5. Represent government agencies undertaking the coordination with related executive departments on applications for foreign investment.
6. Monitor the implementation of decisions concerning foreign investments.
Based on the cabinet decision, the above-mentioned responsibilities shall be assigned to provincial affairs. However, foreign investment in the form of joint venture companies can be executed in two ways:
In accordance with the Companies Registration Act which enables foreign investors to acquire partnership in Iranian companies or participate in setting up a new company with Iranian partners. The foreign investor, under the current regulations for Registration of Companies, is not authorized to hold more than 49 percent of the company’s capital. No privileges or incentives are provided to foreign investors under such scheme.
In accordance with FIPPA and its Implementing Regulations, the partnership ratio of foreign investor is not restricted to the 49 percent ceiling.
Real or legal non-Iranian entities, Iranian individuals and entities whose capitals are of foreign origin are authorized to invest in establishing new private firms or in existing firms.
Investments by foreign government companies are deemed private under the FIPPA.
Foreign investments are allowed for developing and promoting production activities in industries, mines, agriculture and services sectors. Foreign direct investment may be made in all areas in which private sector activity is permitted unless such investment is prohibited in certain fields due to special laws.

Some 4.9 million tons of non-oil goods were transited via Iran in the last Iranian year to March 19 indicating an increase of 7.3 percent, managing director of Transit and Border Terminal Office told IRNA.
“Some 78 percent of the goods were transited by road--the same figure as in the previous year,“ Mohammad Javad Atrchian said, adding that over 22 percent of the goods were transported by rail, showing an increase of nine percent compared to the figure for the previous year.
Atrchian listed Bandar Abbas, Sarakhs, Bazargan, Loftabad, Bandar Imam Khomeini and Bandar Anzali as the main border points for transiting goods with Bandar Anzali ranking first.
He further announced that the main items transited via Iran were cotton, fuel, foodstuffs, construction materials, pipes and agro products. Some 65,753 tons of non-oil commodities were transited via Bandar Anzali port during March 2007-2008.

Plans have been announced to celebrate the 100th anniversary of Iran’s oil industry.
“In addition to holding celebrations nationwide in the oil and gas sector, a public awareness campaign will be launched to inform the people of the industry’s activities through films, photos and sport events,“ head of the Commemoration Headquarters for the Centenary of Iran’s Oil Industry, Hojjatollah Ghanimifard told ISNA.
“National events will also be held and special international gatherings are likely to be included in the agenda,“ he added.
Celebrations to mark the first centenary of Iran’s oil industry are slated for later this month.
Oil was struck for the first time in the Middle East at Masjed Soleiman, Khuzestan province on this day 100 years ago. National Iranian Oil Company was established in 1948 under the leadership of the then prime minister Mohammad Mossadeq with the nationalization of Anglo-Iranian Oil Company.

RussiaÕs Gazprom, Indian Oil Corporation and Chinese groups say Ôthey are waiting to move in if British-Dutch group Shell and SpainÕs Repsol pull outÕ.

European oil groups Royal Dutch Shell and Repsol YPF say they are under pressure from the United States to end talks with Iran about a multi-billion dollar natural gas deal, but they also maintain that they will continue to work in the Islamic Republic.
Russia’s Gazprom, Indian Oil Corporation and Chinese groups say ’they are waiting to move in if British-Dutch group Shell and Spain’s Repsol pull out’.
At the same time, an informed Iranian official has raised the likelihood of reassigning the phases of South Pars gas field development project among European oil companies.
“Shell, Total and Repsol do not intend to cut their cooperation with Iran,“ Fars news agency quoted the official as saying. “They are actually trying to continue their presence in the country’s energy projects and, based on this, they have proposed some changes to the phases previously assigned.“
Shell, Europe’s largest oil and gas company, teamed up with Spain’s Repsol to sign a preliminary deal with Tehran to invest $10 billion in the development of phases 13 and 14 of the project. Phases 23 and 24 of South Pars are to replace phases 13 and 14 as earlier proposed to the companies.
Total Oil Company, which is currently in charge of developing Phase 12 of South Pars, has sought time to decide. However, Shell and Repsol may sell their 50 percent interest in bloc 14. The rest of the shares are held by the National Iranian Oil Company. But they want to make sure that they can keep their interest in blocs 23 and 24, hoping that these can be developed when Iranian-US tensions have subsided.
Shell is conducting technical studies for developing the phase 13 of the giant South Pars gas field, while the French oil giant Total is mulling over developing Iran’s first liquefied natural gas project, which would be fed by phase 11 of the gas field.Following US pressures on companies to stop business with Tehran, many western companies decided to do a balancing act instead. They tried to maintain their presence in the country but not getting into big deals that could endanger their interests in the US.
However after they witnessed that their absence in big deals has provided Chinese companies with excellent opportunities to sign up to an increasing number of energy projects and earn billions of dollars, many western firms are now less reluctant to invest or expand their operations in Iran.
Oil giant Total underlined last month that the French company cannot afford to lose deals with Iran as it is one of the largest oil producers in the world.
Total’s Chief Executive, Christophe de Margerie, told Liberation, “Iran is one of the largest oil-producing countries in the world. And in terms of gas, we are far from having made all the discoveries possible. We cannot afford to be absent.“
Norwegian energy group StatoilHydro has also said that it has planned long-term presence in Iran as the country holds huge oil and gas reserves. “Our main objective is to fulfill our commitments on phases six, seven and eight of the South Pars gas development projects, Anaran and Khorramabad completely and then take into consideration results of the projects,“ Jan Helge Skogen, Statoilhydro’s managing director in Iran said.
“We seek long-term presence in Iran since Iran possesses massive oil and gas reserves, but at present, we are focusing on StatoilHydro’s three current projects and we are ready to consider fresh investments,“ he added.
American oil companies have also displayed eagerness to take part in Iranian projects. As a first step, several US oil companies participated in the 13th International Oil, Gas and Petrochemical Exhibition in Tehran in April. Analysts believe that participation of foreign companies from 30 countries in the annual event shows their opposition to US sanctions.

Financial facilities to the tune of about 100 billion rials have been allocated to South Khorasan province to counter the effects of drought, said provincial governor general.
Various parts of the country are facing acute water shortage in the current year (to end March 2009), Soulat Mortazavi underlined, adding some provinces such as South Khorasan are experiencing severe drought conditions, according to IRNA.
The government has earmarked 2.5 trillion rials to compensate for the losses resulting from drought across the county, the official pointed out. Of this figure, about 1.8 trillion rials have been made available to the provinces in the first phase, he added.
Highlighting that the province’s annual demand for water stands at 1.4 million cubic meters, Mortazavi called for promoting greenhouse cultivation, mechanized farming and pressurized irrigation system.

Given the sharp rise in the global food prices, officials should move towards self sufficiency in the food industry.
Head of Tribal Affairs Organization Jahanshah Sediq told officials of the statistics and information departments of provincial governorates general, that officials have repeatedly announced that they are pursuing a policy of settling tribes.
He put the cost of settling each tribal family at 500 million rials, adding that heavy funding will be needed for achieve the goal.
According to ISNA, Sediq said that the organization would agree to this once grounds are created for the tribes to continue production, increase revenues and get involved in the job market.
The official underlined that land should be allocated to tribal families to establish orchards, adding a number of jobs such as pisciculture, beekeeping and carpet weaving should also be entrusted to them.

Based on estimates, garbage recycling could save over $200 million per year, according to assessments, said managing director of Tehran Municipality’s Recycling Department.
Farhad Pourmohammad-Sakha added that the figure is equivalent in value to 12.8 million barrels of oil, wrote IRNA.
Highlighting that about 8,000 tons of garbage are produced daily in Tehran, he said that biodegradable waste constitutes a major part of this amount. Disposable plastics make up a large portion of recyclable waste, he added.
Unchecked garbage dumping has resulted in environmental hazards in landfills of the metropolis in recent years, he warned, urging for separating garbage at source.
Since Tehran’s population will increase to 17 million in future, new sites have to be considered for dumping garbage, he underlined.

Managing director of the National Iranian Gas Company has said that the price of compressed natural gas (CNG) will be regulated to attract private investment.
Based on the decision, CNG prices will rise from the current 2,000 rials (22 cents) per cubic meter to 4,500 rials (49 cents),“ MNA quoted Reza Kasaeizadeh as saying on Sunday.
“The increase in prices is aimed at expediting the return of capital for the private sector interested in investing in the field,“ he added.
He further mentioned that an agreement was reached with Turkmenistan on April 25 to increase the amount of natural gas delivered to Iran.
“Turkmenistan has pledged to export 30 million cubic meters of gas per day to Iran this year, and this amount will increase gradually.“
According to the official, Turkmenistan will sell gas at a floating rate based on global gas prices from 2009.