Financial Tribune - The water and power sectors have made a significant contribution to exports of technical and engineering services in the past few years, a top energy official says.

“Water and electricity services made up almost 98% of Iran's total exports of technical and engineering services in fiscal 2015-16,” Alireza Daemi, deputy energy minister for international affairs, was quoted as saying by IRNA on Sunday.

He made the statement on the sidelines of an energy conference in Tehran.

In fiscal 2013-14, water and power services made up 47.4% of engineering exports. But the volume increased to 62.1% and 98.7% in the next two fiscals.

Daemi reiterated that the Energy Ministry is keen on supporting domestic companies to increase the exports of technical and engineering services and expand collaboration with international majors.

“Raising funds from domestic investors and attracting foreign direct investment to fund water and power projects as well as forge joint ventures between domestic and international companies are on the agenda of the ministry."

Daemi said earlier that by taking into account direct electricity exports, the total value of exports in water and power industries exceeded $8 billion in almost four years.

--- Overseas Projects

Energy Minister Hamid Chitchian told the conference on Sunday that Iranian contractors had undertaken $4.6 billion worth of energy projects overseas in four years.

Since President Hassan Rouhani took office in mid-2013, "Iranian companies have completed 94 projects in different energy sectors," Chitchian said, referring to data published by the Ministry of Industry.

"The value of Iranian power projects overseas pales in comparison with that of other countries…However, the water and electricity sectors have performed far better than other industries," the minister told the conferees.

Alireza Kolahi, the head of Iran Electricity Industry Syndicate, said at the weekend that Iran has the potential to emerge as “one of the largest exporters of technical and engineering services in the world” thanks to its rich mineral deposits and    massive hydrocarbon reserves.

To manufacture power cables, copper and petrochemicals are required. Iran is rich in raw materials. It sits on approximately 5% of the global copper deposits and can become a major petrochemical producer with its large oil and gas reserves, he said.

"The country should move toward making better use of its natural resources to produce products with higher value-added."