The Economy Finance Ministry's Public Relations Department reported that Farahani referred to the strong industrial and trade ties between Tehran and Berlin.

He added the region has many economic potentials ready to be tapped into. Crisis in Iraq and Afghanistan should be resolved and the prospects for regional economic development is strong in the future, he added.

He specifically touted the increasing need for electricity in the region. Iran needs to produce 20,000 megawatts of electricity in the next decade Safaei-Farahani said adding "Turkey's needs will go beyond the figure."

He said Germany has an opportunity to make investments in electricity sector and Iran as the country with the second gas reserves in the world is a good candidate for investments in the sector.

Electricity powerplants are under-construction throughout the country for generating 10,000 megawatts of electricity, "in which German firms are participating in around 50 percent."

On investments in other sectors, he added Iran is building 16 cement production plants which when completed will double the cement production in the country. Iran needs German investments to complete these projects, Safaei-Farahani added.

He stressed on holding the Iran-Germany Joint Economic Commission in 2005. "We should tackle ways to separate our bilateral economic cooperation from the political aspects of the overall ties," he underlined.

Tacke referred to the current strong mutual ties between the two nations notably in technical area.

Germany is keen on electricity investments in Iran, Tacke said and referred to "the solid industrial potentials in Iran an other regional states."

He also highlighted the participation of German companies in Bandar Abbas and Kerman aluminum production plants.

He further called for greater participation of German companies in Iran's steel sector.

Iran and Germany will expand cooperation in the housing sector, sespecially in Hashtgerd township, according to an agreement signed here last week.

The agreement, signed by Head of the Housing and Building Research Center Ghassem Heydarinejad, Managing Director of Iran's New Cities' Development Company Seyed Mahmoud Mirian and Chancellor of Berlin University of Technology Dr. Kurt Kutzler, calls for making necessary planning for densely populated cities, optimal construction and infrastructure installations, preparation of flexible construction models tailor-made to culture and building resistant buildings.

In September a German business leader predicted that the German-Iranian trade volume could reach 5 billion euros within three years, pointing to the continued economic boom in bilateral trade ties.

"It's only a question of two or three years until we reach the 5-billion-euro mark, which is a realistic figure," the influential chairman of Germany's Near and Middle East Association (NUMOV), Werner Schoeltzke, told IRNA in an exclusive interview.

He added that after Turkey, Iran could become Germany's second most important trading partner in the Middle East region, surpassing the United Arab Emirates and Saudi Arabia.

"German-Turkish trade volume stands currently at around 7-8 billion euros. I believe the German-Iranian trade volume could reach this figure within four to five years. Frankly, I don't see any limits with regard to expansion of bilateral economic relations," Schoeltzke said.

The German-Iranian trade volume hovered around 2.2 billion euros last year.

He referred to a "double-digit growth" in the bilateral trade volume, especially in the steel and aluminium industries and in the petrochemical sector.

... Payvand News - 10/3/04 ... --