According to press office of Petroleum Conference – Iran 2016, Ahmad Dost Hosseini stated that the reason for the existence of the National Development Fund is to convert a part of the national income to productive and expressive national investment while preserving the share of future generations. One part of this wealth comes from oil revenues which amounts to a minimum of 20% of revenue and should be increased annually.
He added: ‘If we have an amount of $50 billion dollars of oil and gas revenue this year (2016), $10 billion dollars of it should be allocated to the National Development Fund. Therefore, the resources of this fund are not used directly and are withdrawn in the form of leverage.’
Dost Hosseini specified that the resources of this fund are allocated to production plans and investments which are technically and economically feasible, and are both competitive in international markets with the capability to export. Therefore, the repayment should be in international currencies.
He also stated that 70% of the resources of the fund are used by the private sector, cooperatives and enterprises. Therefore, the public sector is not allowed to use this fund. A maximum of 20% of all the resources reserved to non-governmental institutions and the remaining 80% for private sector and cooperatives. Furthermore, if the organisation has a representative of the state in the board, then it cannot use the fund.
In addition to the above, he mentioned that international projects won’t be able to draw from these resources.
The Head of Iran National Development Fund also added that the payment warranty will be provided to the technical service exporters with the capability to operate in the international environment to secure the tenders’ bidding phase. Likewise, the same applies for manufacturers and exporters as long as they procure the materials from within Iran.
He emphasised that investment should be within the domestic market.
The Head of Iran National Development Fund outlined the beneficiaries entitled to receive up to 40% loan from the national fund, 30% should be provided by the investor themselves, with the remaining 30% to be drawn from the national or international financial markets.
The Petroleum Conference – Iran 2017, is the follow up of the Iranian oil and gas associations’ initiative to form a ‘United Voice’ of Iran’s petroleum private sector, as convened at the 1st October Petroleum Conference – Iran 2016.
The 2017 conference will be attended by Iran’s Head of Parliament, H.E. Dr. Ali Larijani, Minister of Petroleum H.E Mr. Bijan Zanganeh, and Deputy President in Science & Technology Dr. Sorena Sattari, who have been invited to speak on current economic trends, and Iran’s petroleum investment opportunities.
Petroleum Conference – Iran, is a permanent office in charge of International relationship of Iran’s petroleum industry’s private sector, in order to enhance and facilitate the Partnership, Investment and cooperation between Iran private sector and International organisations.
On May 2016, for the first time in the history of Iran Petroleum industry, all the major petroleum, oil & gas industry associations and unions with more than 1500 member companies with about $40 billion in revenue, assembled as the ‘United Voice’ of Iran petroleum private sector, focusing in midstream and downstream.
The member associations in Iran are:
- ICCIM (Iran Chamber of Commerce, Industries and Mines)
- APEC (The Association of petroleum industry engineering and construction companies) with 220 member companies
- APIC (Association Petrochemical Industry Corporation) with 64 member companies
- ECCA – OPI (Engineering and Construction Companies Association) with 13 member companies
- ICCA (International Consultants and Contractors Association of Iran), with 260 member companies
- OPEX (Iranian oil, gas and petrochemical products exporters’ union), with 292 member companies
- SATSA (Iran Industrial Equipment Manufacturers Association), with 160 member companies
- I.P.I.E.M (Society of Iranian Petroleum Industry Equipment Manufacturers), with 450 member companies