Managing Director of Iran Airport Organization Nourollah Rezaei Niyaraki Said in Shiraz, Fars province, on Sunday that with ceding much of airport affairs to the private sector the government's role in the management of airports will be greatly reduced, IRNA reported.
He told reporters in Shiraz that though privatization trend of the economy is welcomed, "its pace has to be carried out with great deliberation and care."
The trend in privatizing some of airport affairs, including maintenance, customer services and administration has started several years ago, he added.
He also said the government will continue its supervisory role over airport administration, other fields including flight security, fire prevention and several other functions will be ceded to the private sector.
He said the private sector participation will improve services rendered to the passengers, adding "the fund allocated to the airport modernization has totaled rls 200 billion."
"The sum will be spent on renovation and development of the airports," Rezaei-Niyaraki added.
On cancellation of some flights from several airports to Kuwait during the US attack on Iraq, he added "we have incurred financial losses and a special commission is striving to determine the amount."
Meanwhile, Deputy Head of Management and Plan Organization (MPO) for Planning Hamid Reza Baradaran-Shoraka has warned that a rushed and forces privatization plan could create many more adverse consequences for the nation than it exists in the current state-driven economy.
He told IRNA that given the domestic economic structure a formal and legal framework has not been drawn-up of the privatization plan.
He further foresaw a gradual and deliberate privatization plan of five to 10 years predicted on such crucial policies of downsizing of the government, and ceding of state assets to the private sector.
He said the private sector will be given more incentive in the Fourth Five-Year Socio-Economic Development Plan (March 2005-March 2010).
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