Finance Master's term paper example

The second plan for five years indicates government’s interest and consideration towards petrochemical industry as a total investment of more than four and a half billion dollars were allocated for petrochemical industry. The plan also indicates to attract foreign and domestic investors (Petrochemical Industry and Market of Iran, 2005). A goal of total investment of nearly three billion dollars is set for foreign and local investment. There are two options set in the second plan. One was to attract local and foreign financiers to finance projects while other was to attract only the local financers (WWP, 2006). The amount that the local financers would be financing is approximately eight hundred million dollars (Petrochemical Industry and Market of Iran, 2005).

These investment strategies and planning came to the forefront in 1995 in the month of March by the declaration of the head of NPC named Ahmed Rahgozar. This planning was disclosed late as the first plan for five years completed its tenure in 1994. Therefore, this plan was a year late (Nasseri and Daya, 2007).

The Government of Iran has set aside the petrochemical industry according to the first plan for five years (Petrochemical Industry and Market of Iran, 2005). The government was only interested in the contribution of private sector towards the investment in petrochemical industry and was not ready to invest itself. This plan was not succeeded as the domestic banks did not participate or contributed to governmental plan (Ule and Alexander, 2004). Therefore, the governmental planning did not take realistic form because of lack of contribution from the private sector (Nasseri and Daya, 2007). The second plan for five years had set a contribution of nearly twenty projects from private sector but private sector was not fully able to contribute this much productivity so the investment from foreign investors became compulsory.

Projects for Petrochemical Industry