The Iranian Privatisation Organisation (IPO) says it divested a total of IR800,000bn ($80bn) over the last five years.

“The IPO, on behalf of the government, has divested more than 800,000bn rials of the state-owned shares [for five years] until 20 March 2011,” says Noori Borojerdi, president of the IPO and Deputy Minister of Economic Affairs & Finance.

Of the total, the largest contributing sector was the oil industry, including refineries and exploration, which generated $27.6bn from the sale of its assets, says Borojerdi.

A further $11.5bn was generated from the sale of shares in the Telecommunications Company of Iran, $9.8bn was generated from the sale of shares in the petrochemicals sectors, $4.8bn was divested from the country’s power plants and $4.3bn was generated from the sale of assets in the banking and insurance sector.

Assets from about 155 companies were sold in the last year.                               

“The experience of divesting in the oil [sector] was started seriously last year and we hope that we can see the continuation of this process during this year,” says Borojerdi. “Some of the divestitures have been conducted to the settlement of debts of the previous governments.”

In the current year, the IPO is planning to sell shares in a number of other state-owned companies, including Iran Air, Saipa Logistics Transport Company, the North Drilling Company, Railway Installation & Construction Engineering Company, Tabriz Oil Refining Company and Khuzestan Kaveh Aluminium Company.

In March, the IPO listed a second five per cent share of Saderat Bank on the Tehran Stock Exchange (MEED 14:3:11).