Iran Ministry of Roads and Urban Development's debt to contractors hits $4.5B

Business Materials 27 May 2019 14:43 (UTC +04:00)

Tehran, Iran, May 27


The debt of Iran's Ministry of Roads and Urban Development to contractors has reached about $4.5 billion, said the deputy minister Amir Amini, Trend reports citing IRNA.

He added that the around $177 million worth of debts has accounted for the consultant services for engineering companies.

"During the last Iranian year (started March 21, 2018) around $1 million of ministry's debt has been paid back to contractors and consultants," he said.

The official indicated that most of payment debt was via bonds and not in cash.

"The Ministry of Roads and Urban Development is clearing 40 to 60 percent of its debts to contractors annually, but implementing development projects in this sector creates new debts that add to previous ones," said Amini.