ICCA Sets Goal of $7 Billion Of Exports in Third Development Plan
The secretary general said about 100 governmental and non-governmental companies are members of the International Consultants and Contractors Association and about 1000 companies are cooperating with this association directly and indirectly in areas such as engineering and architecture.
The secretary general said that in order to help Iranian private and state companies doing business abroad, the ICCA, as an NGO, should do the following:
1. Preparing the Ground for Business in Foreign Countries
(A) For this purpose there should be close cooperation between the ICCA and the Iranian Foreign Ministry so that the necessary political atmosphere is established for these companies to do business abroad. (B) It should also provide legal status; for example establishing a close relationship between the ICCA and the Majlis, the Management and Planning Organization (MPO), the Commerce Ministry, the Central Bank and some other state bodies.
(c) It should try to promote the companies' capacities through mergers so that companies can form consortiums in order to be able to compete for international contracts.
2. Training Any business abroad should be competitive and economical; it should also meet international standards. For instance, they should finish the job at the specified time, make use of advanced technology, become familiarized with international regulations, cut costs and manage projects efficiently.
3. Facilities
This includes financial and insurance facilities, customs needs, and transportation.
Much work has been done in this regard. For example, banks have provided facilities and the Iranian Foreign Ministry has allocated a budget under the name of Official Development Aid (ODA) to help those companies which are interested in doing business abroad or taking part in international tenders.
The Export Promotion Center also pays part of the costs of those companies which market abroad.
A.F. Kashan lamented the unhealthy competition between private and state companies, saying some state companies enjoy privileges denied to private companies.
In order to be able to conduct business abroad, companies should be qualified, Kashani said, adding that they should have sufficient capital and skilled workers.
The secretary general said that the ICCA is not strong enough but it is trying to act as the spokesman for the companies and remove the hurdles in their way.
Since any participation in international tenders is costly and there is plenty of work in the oil, petrochemical and energy industries in Iran, companies prefer to work at home because they think they that the job will be easier.
However, the secretary general cast doubt over the pledge that the association would be able to meet its $7 billion export target as stipulated in the Third 5-Year Development Plan (2000-2005).
He said that in the first nine months of the current year (ends March 21) Iranian companies have signed contracts worth around $750 million abroad and the sum stood at $1.3 billion dollars in the last Iranian year.
The ICCA conducts activities in Central Asia, the Caucasus, Ukraine, the Persian Gulf Arab states, India, Pakistan, and some African states (such as Benin, Nigeria, and the Congo). For example, it built roads in Pakistan and Kyrgyzstan, a power plant in Oman, factories in the Republic of Azerbaijan, a bridge and roads in India, cement factories in Syria, and a power plant in Nigeria. 4. Exporting Engineering and Technical Goods and Services to Afghanistan
On Iran's share in the reconstruction of Afghanistan, the ICCA secretary general said Iran should first define its strategies in Afghanistan. He said that Iranian officials should coordinate Iran's political and economic interests in Afghanistan.
The ICCA official said that Iran enjoys certain advantages in Afghanistan, citing the common language, geographical proximity, and the presence of two million Afghan nationals in Iran. He also said that the Afghan people favor Iranian goods and products.
He said that if Iran builds a road between the Iranian city of Zabol and Milack in Afghanistan, the travel route would be cut by some 700 kilometers.
The ICCA chairperson also said that if the Afghan government agrees, Iran and Afghanistan could establish a joint bank, and in this way Iran could more easily contribute to the reconstruction of Afghanistan. 5. Budget
Commenting on the Tokyo Conference on Afghan Reconstruction which was held January 21-22, the ICCA chief said this conference was sponsored by Saudi Arabia, Japan, the U.S., the UN and the European Union. He said many NGOs took part in the conference.
In the conference it was said that the Kabul government needs $1.8 billion for its relief programs, drinking water, employees' wages, etc. in the current Afghan year and $5 billion for the next five years. However, donor countries have pledged $1.7 billion for the Afghan current year and $4.5 billion for the next five year.
He said that Iran pledged $560 million for the Afghan reconstruction plan at the Tokyo Conference, the largest amount among the participating countries. He said that $60 million will be earmarked for emergency assistance to Afghanistan.
The secretary general lamented the lack of flights between Kabul and Tehran and other facilities like rooms or hotels for Iranian people who want to go Kabul. However, he said that Mahan Airlines has promised to establish flights between Tehran and Kabul and the Iranian Embassy in Afghanistan has vowed to provide facilities for those Iranians who want to visit Kabul.