BANDAR ABBAS Deputy Energy Minister for Water Affairs Rasoul Zargar said Monday the Islamic Development Bank (IDB) is to open a credit line of $60 million for Iran to develop its water sector.

In a ceremony to embark on the implementation of the Jegin Dam project in Jask in the southern province of Hormozgan, Zargar said the Ministry of Energy is to build some new dams which are necessary to meet the country's dire need for new water resources.

He added that for building the dams, the ministry would provide the needed budget through selling partnership stocks and getting foreign loans including the credits provided by the IDB.

He went on to say that last year the IDB provided Iran with $650 million to construct seven gigantic dams to counter the water shortage.

Some $97 million of the said budget would be spent on the Jegin and Shamil dams and the establishment of the water supply system of Qeshm island.

He said just 13 percent of the government budget allocated for development goes to the Ministry of Energy which he said was disproportionately low and which would allow the ministry to meet only one third of its budgetary need for dam-building.

Islamic Development Bank (IDB) in its 199th executive board session ratified on March 27 a loan of dlrs 34 million to Iran, announced the Public Relations Department of the Ministry of Economy and Finance.

The ministry said the loan will be used on water and sewage control projects in Hamedan. The loan installments should be paid within a period of 12 years.