Power blackouts hit Iran

Business Materials 15 January 2012 11:42 (UTC +04:00)

Azerbaijan, Baku, Jan. 15 / Trend M. Moezzi /

The Iranian government's debt to electrical contractors is so serious that blackouts will be in two years if projects remain unfinished, Fars news agency quoted the managing director of Iran's power company Majid Salehi as saying.

Some of the Iran Power Development Company's (IPDC) debt is owed to banks. The government said that it be regarded as the government's debt, Majid Salehi said.

The company owes its largest electricity contractor, MAPNA, nearly $1.6 billion (18 trillion rials).

If the electricity sector continues to have such shortage of funding that it can not complete the projects, the country will face blackouts in 2014 and 2015, Salehi said.