Export Services Development of Trade Promotion Organization of Iran said that value of contracts for technical engineering services surpassed USD 2.5 billion in the first eight months of the current Iranian year (started March 21).

Mr Sohrab Salimi director general of TPOI said that the increasing trend for technical engineering projects started in 2005 and reached its peak in 2007 when deals for 117 projects were concluded. He added that during 2008 and 2010, the trend declined and by March 2010, the number of projects fell to 63.

He stated that in the current year, technical engineering contracts in the fields of energy, industry and housing were signed with countries including Ghana, Sudan, Oman, Pakistan, Azerbaijan and Tajikistan. The increase in the number of the projects on one hand pertains to companies' cooperation in smaller projects and on the other hand results from the government's supportive incentives. The average value of the projects in 2007 amounted to USD 17.5 million, while in 2010, the figure stood at USD 52 million for each project.

Last week, TPOI's head said Iran exported technical engineering services to nine countries in Asia, Latin America and Africa during March 21st 2011 to November 21st 2011.

Mr Hamid Safdel pointed out that contracts worth USD 2.8 billion were added to the earlier agreements during the aforesaid period. He listed construction of dams and power plants, designing and installing energy turbines, launching sewage treatment facilities and water supply operations as the technical engineering services.

Earlier in July 2011, TPOI's deputy head said Iran will export some USD 4 billion worth of technical engineering services in the current year. Mr Kiumars Fathollah Kermanshahi further said that the export potential of the country is higher than the figure mentioned.

He noted that TPOI's target for the current year is the export of USD 45 billion worth of goods and services, USD 4 billion of which pertains to the exports of technical engineering services.

He said that currently, export of technical engineering services account for 75% of all countries' economy. The official added that the export of technical engineering services in Iran began with the implementation of a project valued at USD 75 million in 1994 and the figure reached about USD 250 million in 2001, after which the exports hit USD 3.3 billion last year recording an annual growth of between 35% and 40%.

He said that about USD 500 million of the exports were in the industries sector, USD 800 million pertained to power plant construction, USD 1.4 billion to the construction sector and the remainder pertained to other sectors.

(Sourced from www.zawya.com)