foreign investors would benefit from maximum discounts. For instance, if the rate of return in a project is 18%, the figure could be increased to 20% by offering discount in the feedstock price. That would encourage foreign investors to envisage investment in Iran’s petrochemical industry because outside Iran they may even be content with half that figure.The discount in feedstock prices considered for investors would be in line with regulations.In case investors invest in underdeveloped or underprivileged areas, they would enjoy a 30% discount, which is the maximum discount granted.Another possibility for foreign investors is that they can present their own plans in light of domestic, regional and international markets. “Of course, such facility is also available for domestic investors,” said Ali-Morad. Another option, he said, would be to provide infrastructure in areas where petrochemical projects would be implemented. “Following fulfillment of such infrastructure in the hubs with potential for petrochemical development, investors would be assured that the government favors development of that particular area and implementation of petrochemical projects,” he said. “For instance, Iran’s Petroleum Ministry is managing the projects so as to accelerate the creation of infrastructure. Domestic and foreign investors also push ahead with their activities in light of the infrastructure,” he added.Ali-Morad said either the Petroleum Ministry or NPC could fund the infrastructure. “In case any investor is ready to build infrastructure in a specific area, it would be supported by NPC or the Petroleum Ministry. The required facilities would be provided to that company and it could finally generate revenue through these services,” he added.Projects Ready for InvestmentA total of 105 projects have been envisioned for investment in the petrochemical industry, 41 of which are new. “Unfortunately, over 90% of these 41 projects have had less than 10% progress due to numerous problems including financing,” said Ali-Morad. These projects are estimated to need about $55 billion in investment for completion. “If we assume that domestic investors would account for 20% of the aforesaid sum, i.e. $11 billion, the remainder has to be financed by the private sector through our planning and assistance,” he added.Another 64 projects have had over 20% progress. NPC is looking for short-term and mid-term mechanisms and is focusing upon domestic financial resources in order to finance these projects and help investors complete them. The top priority goes to the 15 projects which have had over 70% progress. “My colleagues are focusing on the management of these projects in order to enhance and assist the Iran’s economy,” said Ali-Morad. “If our negotiations with 13 foreign companies yield results, at least $15 billion in foreign direct investment would be attracted into this industry,” he added. Asked about how much investment had been attracted into the petrochemical industry since President Hassan Rouhani took office in 2013, he said: “Over this time, about IRR 200,000 billion plus $10 billion has been invested by the private sector in the petrochemical industry and the projects are currently under way.”Financing and Investment Ali-Morad said financing by foreign companies would not be considered as foreign investment.“I personally do not see financing as foreign investment,” he said. “Of course, at present $4-5 billion in Asian financial credit line has become effective, which private sector projects are using,” he added, noting that the credit lines became effective under the Rouhani administration.Domestic vs. Foreign Investment Iran’s top priority for financing and implementing projects is attracting foreign investment. Petrochemical industry is no exception and the reason is clear as domestic resources would have the least engagement in the implementation of projects. Ali-Morad also touched on another reason for favoring foreign investors over domestic investors, saying: “Foreign investors automatically do civil defense work for us in the region because the presence of foreign investors would reduce the possibility of threats.” Asked if the presence of foreign investors would zero threats, he said: “No, the likelihood of threats will not be reduced to zero, but it will be reduced because a foreign investor comes with capital and that reduces the possibility of international threats.” “We look differently at domestic and foreign investors. We give some privileges to foreign investors, but that does not necessarily mean that domestic investors are of lower significance to us. It must be taken into consideration that under the current circumstances our top priority is to rely upon domestic resources and investors,” added Ali-Morad. “However, we are looking at foreign investors differently and we try to encourage them in the first place to account for the implementation of projects by themselves and then to implement projects in partnership with Iranian investors,” he said.Diversity in Projects Iran’s rich gas resources and gas-based technological progress in the petrochemical sector provides Iran’s petrochemical industry with the chance to envisage a variety of projects for implementation. That empowers investors to choose between the projects based on their objectives for investment. Naturally, the projects which are based on gas feedstock are welcomed further for investment. However, the Petroleum Ministry has mainly focused on the completion of value chain in its projects. NPC is pursuing the same strategy. That means NPC’s top priority is to finance projects feeding the petrochemical industry, including liquefied natural gas (LNG) projects. In fact, implementation of these projects results in feeding several petrochemical plants. However, a project may be 30% complete, but it is prioritized by NPC in implementation due to its benefits for other petrochemical units. Ali-Morad referred to his talks with foreign companies for transferring value chain technology like methanol, saying: “At present, with the assistance of Petrochemical Research and Technology Company (PRTC) and a foreign company, we have made good progress in bringing in the technology to continue the methanol chain and we hope that the technology for this product would be indigenized in Iran soon so that we would no longer depend on importing it.”Absolute HopefulnessThe US’s unlawful and unilateral sanctions have slowed the pace of attraction of investment in Iran. However, Ali-Morad said: “I am 100% hopeful in the future of investment in the petrochemical industry.” “We are currently under US unlawful and unilateral sanctions. Anytime I am in talks with domestic banks, they say the petrochemical sector is the only industry which can reliably and sustainably generate hard currency,” he said. “They are assured of the return of resources engaged in this industry and that means the future of investment in this industry is bright in light of the high rate of return on investment and reliance on domestic resources,” said Ali-Morad