BABOL According to IRNA, MP from Babol Mohsen Nariman said here Monday that the official from the World Bank (WB), after visiting the site of 'Alborz' Dam, has allocated $80 million for its construction.

He told reporters that WB estimates the total cost of the dam at $130 million, of which $50 million will be disbursed by the government.

The dam which is to be constructed on the Babolroud (Babol River) will have the capacity of irrigating 50,000 hectares of farmland when it becomes operational, he said.

He also said that the dam will be commissioned around mid-2004.

Meanwhile, as sign of closer cooperation between Iran and the World Bank, Deputy Minister of Housing and Urban Development Manuchehr Khajedeloui said here in December that WB is ready to cooperate with Iran in neighborhood revitalization and housing reconstruction for the low income population groups.

Speaking at a meeting of provincial Urban Reconstruction and Revitalization Headquarters, he added that a memorandum of understanding (MOU) valued at $170 million has recently been signed with the World Bank.

In November, a World Bank official said Iran's housing problem can be solved through proper growth of private, not government sector.