ARAK -- The Mexican company millennium is to build a sport stadium and a five-star hotel in Arak, capital of Central Province, IRNA reported Wednesday.

Iran and Mexico allowing the latter to embark on the construction of the luxury hotel and sport stadium shortly inked an agreement.

Head of the Millennium Company Alejandro Garcia told reporters that Arak has a high potential and that is why the company has decided to engage in developmental projects in the city.

Garcia said under the inked agreements with the central province officials the 70,000-seat stadium and the hotel would be constructed within a five/three-year period.

He said a Mexican delegation would visit Iran's central province to conduct a study work there within the two weeks to come.

He went on to say that the budget for the stadium project is $25 million adding that the implementation of the stadium and hotel projects are expected to create some 50 thousands job opportunities.

He said a 25-million budget has also been foreseen for the construction of the hotel.

Speaking also to reporters, the MP from Arak and Head of the Physical Education Committee of the Majlis Ali Nazari said the sport stadium to be built in Arak would be one of the huge sport complexes in the country.

He said the Iranian government is after encouraging the foreign companies and investors to invest in the developmental projects in the country.

Studies conducted have showed that the investments risk has lowered in Iran and this would contribute to improve the atmosphere for investments in the country, he noted.

Reforms launched by the government including measures on the overhaul of the banking and taxation systems, instituting a single foreign exchange rate, changing of non-tariff barriers to a tariff regime have also had a positive effect on attraction of foreign investments.

The new Investment Law is preferable to the old one, he said adding the Foreign Investments Bill was initially ratified in 1955.

Deputy Minister of Economy and Finance Mohammad Khazaei said in March that Iran has attracted over $4.6 billion of foreign investments over the last decade by foreign investors. He added that between 1992 to 2002 the inflow of foreign investment topped some $4.6 billion, adding, "This shows a considerable increase in foreign investments in Iran as compared to the 1980s."

He said mainly Germany, the Netherlands, Britain, Belgium and Kuwait have made these investments.

Investments have been made in the various economic sectors including the production of gas pipeline, power plants, construction of the polyethylene factories, paper manufacturing units, and car-making industry.