Official: Iran’s power industry has no problems

Business Materials 3 March 2012 12:40 (UTC +04:00)

Azerbaijan, Baku, Marcg 3 /Trend F.Milad/

The domestic power electricity industry is by no means facing problems and sufficient amounts of electricity have been stored, the Iranian deputy energy minister Mohammad Behzad told Fars News agency.

Behza said that building power plants to added 5,000 megawatts to the country's power generation capacity has been planned.

He refused some reports on domestic media about issuing bonds by the energy ministry to settle dues to contractors in the field of water and power sector, saying that the bonds were sold to finance projects across the country.

Khabaronline Persian website reported on March 2 that the Iranian energy ministry owes some 70 trillion rials (about $5.7 billion) to its contractors in water and power sector.

The powers sector and the water sector contractors claim more than 50 trillion rials and 15 trillion rials respectively, the report added.

The energy ministry will provide its creditors with unsold participation bonds which have recently been issued to finance domestic water and power projects, ISNA news agency reported on February 27.

The ministry issued some 30 trillion rials (about $2.5 billion) in bonds in the current calendar year, which started on March 21, 2011, but the public did not welcome the bonds due to low profit, Energy Minister Majid Namjou told ISNA news agency.