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Iran awards $17bn worth of manufacturing projects to local contractors

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
Iranian President Ebrahim Raeisi speaks in a ceremony held in the Iranian capital Tehran to mark the launch of 48 major manufacturing projects with $17 billion worth of investment in the country on February 6, 2022.

The Iranian government has awarded 48 major manufacturing projects to local companies amid efforts to boost economic activity in the country by encouraging job and wealth creation.

Iranian President Ebrahim Raeisi ordered the launch of the projects on Sunday as he attended a ceremony in the capital Tehran to highlight his government’s plans to boost exports and employment in Iran through supporting manufacturing activities in the country.

A consortium of six major domestic companies, working under the brand of Pioneers of Iran’s Progress, will execute the projects in 27 cities in 13 Iranian provinces, said a report by the Tasnim news agency.

Other reports said that the consortium was formed more than three months ago upon an initiative by Raeisi’s newly elected government. The group has secured the permissions and the initial funding needed to start the projects, said the reports.

Tasnim said the projects will need $17 billion worth of investment to finish and will focus on manufacturing of mining, metal and petrochemical products.

It added that the projects are expected to create 21,000 direct jobs and another 64,000 in the wider supply chain of the related industries.

The report said that the projects will generate around $20 billion worth of annual revenues for Iran once they are finished, including some $11 billion in direct export revenues.

While announcing the start of the projects, Raeisi said that a booming manufacturing sector will be key to his government’s plans to reach an economic growth target of 8% in the calendar year to March 2023.   

The Iranian president said that awarding large-scale projects to local contractors was a sign that the current government has full belief in domestic capacities of the Iranian economy.

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