Jafar Sobahni told NIPNA that cession of 80% of the state-owned stakes of the company valued at IRR 9,200b (nearly $287m) has failed so far and no buyers have indicated willingness to buy the stakes.
Damavand Petrochemical Utility Complex provides utilities and offsite services required for petrochemical projects at Phase II of the Pars Special Economic Energy Zone near Asaluyeh, a county alongside the Persian Gulf, 280 km southeast of Bushehr in southern Iran.
He said stakes of four other firms were to be put for auction on Tuesday.
IPO has been holding real auctions this year for cession of the remaining state-owned petrochemical companies in the country, the official added, saying if cession is unsuccessful the deadline for selling the companies will be extended to the next year.
He said valuation of the company’s total stakes has lowered by at least $171.5m for luring buyers into a deal for buying the state-owned stakes of the company.
Phase I of the project has progressed by investments from local companies like Marjan, Dena, Sabalan petrochemical plants as well as the National Petrochemical Company (NPC) by an investment of over €640m.
The project will need at least €500m of more investment in its first phase.
Provided that timely investment is made for completion of the project’s first phase, all its units, except the water supply unit, will come on-stream by late 2017, Managing Director of Damavand Petrochemical Utility Complex Hossein Shahryari has said.
The facility’s steam unit as well as one of its turbines have become operational so far.
The facility is being developed for supply of 1,960 megawatts of power, 1,800 tons of steam, 400,000 tons of all water types, 500,000 tons/hour of oxygen and 50,000 cubic meters/hour of instrumentations.