The Iranian president Ebrahim Raisi had promised to build one million homes a year after taking office. At the same time, this surprised observers, as the construction budget in recent years was too small to finance such a heavy project. The plan was called the ‘National Housing Movement Plan’.
Now, a few months after his government takes office, the state media is reporting that the regime is forced to barter oil for the country’s housing projects. Even in the budget plan of the government for the coming year the government did not consider any budget for this plan but increased the budget of its Revolutionary forces and its repressive forces such as the Basiji’s.
Even the regime’s seminaries budgets have been multiplied so that many of the regime’s officials are warning about the consequences of such a decision, while not considering the people needs and incomes in the budget, which housing budget is just one of the many.
Therefore, having not, the budget for housing construction Raisi and his government is raising the issue of the oil bartering for housing projects to finance this project.
On October 17, 2021, Minister of Roads and Urban Development Rostam Ghasemi claimed that the Iranian government had cooperated with some foreign countries to ‘industrialize’ one million housing units by cooperating through ‘oil bartering for financing or payment.’
Then the IRGC announced that they will cooperate in the 1 million housing project. And after that, the government officially announced that Chinese companies will enter Iran for this project very soon.
Ali Babaei Karnami a regime’s MP announced on November 5 that Chinese investment could be used to build 4 million housing units.
Pointing out that China is an ‘economic superpower’, he added: “What is wrong with entering new investments under the pretext of providing housing, and in addition to domestic capacities, the capacity of Chinese investors can be used to build 4 million housing units.”
The head of the Housing Foundation, Akbar Nikzad reported on November 8 that the housing project will become operational within 20 days, but until now there no leap in the housing construction.
About this hot subject, the state-run daily Vatan-e Emrooz in an article entitled ‘Will oil become housing?’ on December 20 wrote:
“In recent months, the issue of oil bartering for housing construction by the creators of the National Housing Movement and the use of foreign companies in the project of production leap and housing supply (National Housing Movement) has become hot in the media and now Deputy Minister of Roads and Urban Development said that the Ministry of Roads and Urban Development is waiting for the establishment of a mechanism by the parliament and the Ministry of Oil.” (State-run daily Vatan-e Emrooz, December 20, 2021)
And about one of the consequences of such a decision for the country’s working-class this paper wrote: “The important thing is that foreign companies do not bring labor into the country and use the capacities inside the country.
“Some experts believe that with the import of foreign construction materials, domestic factories will be closed, and the construction cost will increase even more due to the increase in transportation costs.” (State-run daily Vatan-e Emrooz, December 20, 2021)
Also, Ahmad Donyamali, member of the Supreme Housing Council about oil bartering for housing project payment said: “In negotiations with foreign companies, we are seriously pursuing the issue of oil bartering, and we have stated that the condition for cooperating with foreign companies to start the National Housing Movement project is that we do not pay any cash and their services are bartered with oil or mineral goods, although we know it is not an easy action.” (State-run daily Vatan-e Emrooz, December 20, 2021)
