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Market brief

Iran

The authorities that procure water infrastructure in Iran, how the deals are put together, and what is in the pipeline.

Reference profile for Iran

Overview

Iran’s water market is domestic. The Ministry of Energy sets policy and buys desalinated water from privately operated plants on long-term contracts; in August 2022, 95 plants totalled 634,000 cubic metres a day.1 Dams and transfer tunnels are state-funded works let to Iranian contractors, and the Gulf transfer lines are financed with equity from industrial companies, with the National Development Fund paying for parts of the Hope line.2 The register tracks 40 schemes, US$ 22.1 bn of their disclosed value in projects not yet operating.3 The pipeline is large, but access for foreign firms is the limit: the ministry invited foreign investors to co-finance projects in July 2025,4 yet no open tender, pre-qualification portal or standard concession was found. United States sanctions engage any US person in the chain,5 and UN and EU measures were re-imposed in September 2025.6

Market snapshot

The commercial picture in Iran: the scale of the economy and the water sector, the investment climate, and where the near-term activity is concentrated.

92.4 M
people (World Bank WDI, 2025) · +0.9% a year
US$ 362.7 bn
GDP (2025) · -2.8% a year
US$ 26.0 bn
disclosed value of tracked projects (major projects register)
US$ 22.1 bn
of which pipeline (projects not yet operating)

Political stability

36/100 · Lower-middle

World Bank Worldwide Governance Indicators score, 0–100 (absolute scale), 2025. Political stability; higher is more stable.7

Investment climate

29/100 · Low

World Bank Worldwide Governance Indicators score, 0–100 (absolute scale), 2025. Regulatory quality for private investment; higher is better.7

Key institutions

  • Ministry of Energy (water affairs)Ministry
  • Ministry of Agriculture-JahadMinistry
  • Iran Water Resources Management CompanyResources holding company (Ministry of Energy)
  • Provincial water & wastewater companies (Abfa)Utility

Financing & PPP

  • PPP frameworkEmerging
  • Tracked projectsUS$ 26.0 bn disclosed value in our projects register, of which US$ 22.1 bn pipeline (not yet operating)
  • Active fundersDomestic finance, National Development Fund
  • Climate adaptation planIn preparation (GCF support approved 2025)

Opportunities

  1. 01Gulf & Oman-Sea desalination and conveyance
  2. 02Aquifer recharge & subsidence control
  3. 03Irrigation efficiency at scale
  4. 04Wetland restoration

Key challenges

  1. 01Severe groundwater depletion & land subsidence
  2. 02Drying wetlands (Lake Urmia)
  3. 03Very high agricultural water use
  4. 04Inter-basin transfer controversies
Sources and notes

Sources: Water use by sector and total water withdrawal: FAO AQUASTAT, estimate for 2023; freshwater withdrawal by source: FAO AQUASTAT, 2020; FAO AQUASTAT Dissemination System, retrieved 20 October 2026. No desalination or reuse share is shown: AQUASTAT's latest desalination figure (2022) has no official total withdrawal for the same year. Population and GDP: World Bank WDI, latest year (shown on each tile). Other figures: FAO AQUASTAT / national reports, latest available, approximate. Governance indicators: World Bank Worldwide Governance Indicators (2025).

Contracting authorities

The bodies that commission, regulate and operate water infrastructure in Iran. In Iran the Ministry of Energy sets water-sector policy and buys desalinated water from privately operated plants on long-term contracts;1 provincial water and wastewater companies run the urban networks; and tariffs are set nationally by the government on the ministry’s proposal.8

How deals are structured

The framework in Iran is Emerging, the schemes we track carry US$ 26.0 bn of disclosed value, US$ 22.1 bn of it in projects not yet operating, and the funders most active in the sector are Domestic finance, National Development Fund.

In Iran, the dams and transfer tunnels in the register are state-funded works let to Iranian contractors; seawater desalination is bought from privately operated build-own-operate plants (NVCo at Bushehr and Chabahar, Shaya at Bandar Abbas) on long-term contracts with the Energy Ministry;1 and the Gulf transfer lines are financed with equity from industrial companies. The Finance & Economics hub sets out each model and where it has been used.

The projects register gives a partial view. Of the 40 tracked schemes in Iran, 2 name a concession or independent-producer structure in the finance note; the rest record only where the money came from, which is not the same as saying they were not concessions.

How to bid

No open procurement route for foreign bidders was found. The Energy Ministry has invited local and foreign investors to co-finance water and energy projects through public-private partnerships (July 2025),4 but no open tender, pre-qualification portal or standard concession was found, and United States sanctions apply to any US person in the chain (see below). A domestic offtake market does exist: most Iranian desalination plants are operated by the private sector and sell their water to the Energy Ministry through long-term contracts. In August 2022, 95 plants totalled 634,000 cubic metres a day, 75 of them operating, and the reported average production cost in the year to 20 March 2022 was about 98,000 rials a cubic metre, reimbursed by the government.1

How to bid
Offtake counterpartyThe Ministry of Energy, with the national water and wastewater company and the provincial companies below it.1
RouteDomestic. Projects are financed from the state budget, the National Development Fund (parts of the Hope transfer line),2 state banks such as the Export Development Bank of Iran (on build-own-operate desalination plants) and industrial companies’ equity (on the Gulf transfer lines), and built by Iranian contractors and consortia. No open tender a foreign contractor can bid, no pre-qualification portal and no published standard concession were found.
SanctionsUnited States regulations prohibit a US person from supplying goods, technology or services to Iran or its government, from new investment in Iran or in property owned or controlled by the government, and from facilitating a foreign person’s transaction. An offtaker that is a ministry is by definition a government counterparty, so any US person in the chain, whether lender, insurer, parent, dollar-clearing bank or supplier of US-origin membranes, engages those prohibitions.5
TariffUnder the 1404 budget law (Iranian year March 2025 to March 2026), the provincial water and wastewater companies collect, on top of the water charge, 2,000 rials a cubic metre up to the household consumption standard, or up to contracted capacity for non-household users, and 4,000 rials above those thresholds, for the National Water and Wastewater Engineering Company.9 10 The tariff itself is set nationally: the Cabinet set water and sewerage subscription charges on the Ministry of Energy’s proposal in January 2025.8

European Union and United Nations: after the snapback procedure, UN Security Council sanctions on Iran were re-imposed at the end of September 2025, and the EU reimposed its nuclear-related restrictive measures on 29 September 2025 (Council Decision (CFSP) 2025/1972).6 Nothing here is legal advice.

Regulatory intelligence

Regulatory status matrix
RegulationStatusYearNote
First post-revolution water lawUnder-enforced1982Public ownership of water; Ministry of Energy allocates and permits use.
Urmia Lake Restoration ProgrammePartial success2013–Rights purchases, efficiency, inflow recovery.
Groundwater Rehabilitation and Balancing PlanImplementation incomplete2006–Blocking illegal wells and installing volumetric meters; about 125,000 of some 416,000 authorised farm wells had smart meters in August 2026.
Seventh Development Plan, Article 40Guideline drafted2026Would gradually transfer part of the Ministry of Energy's farm water management to farmers and their organisations.
National Climate Change Management PlanAdopted2025Resilience in water and agriculture.
Helmand treaty (with Afghanistan)Strained197326 m³/s entitlement, disputed deliveries.

Institutional picture simplified; conditions vary by province.

Projects

Tracked schemes in Iran, largest first. Each has its own page with the parties, the finance and a dated history.

Switch layer
OperationalUnder constructionIn tenderPlannedDot size follows disclosed value. Click a dot for the project page.
Sources and notes

Interactive map: switch views, hover or focus a marker, and use the +/− controls (or double-click, then drag) to zoom and pan. Geometry and data from the MENA Water Review library.

40 tracked in total. The full set, filterable, is in the major projects register.

Track record

Contracts on record in Iran, from the awards log and the major projects register, dated by commissioning where known.

Tracked awards in Iran
YearProjectWinning firmsUS$ m
2018 on lineBandar Abbas DesalinationFarab, Tana Energy Management, TIV Energy, Machine Sazi Vijeh developern/a
2016 on lineBushehr DesalinationNVCo developern/a
under constructionSarni Dam and Water Supply SchemeNational Building Company, Payab Kousar, Zhian contractorn/a
operatingChabahar DesalinationNVCo developern/a
2005 on lineKarun 3 Dam and Hydroelectric PlantFarab, Sabir Construction, Boland Payeh, Tablieh contractorn/a
2004 on lineTehran Fifth Water Treatment PlantPeyman Ab Gostar, Machine Sazi Vijeh contractorn/a
2002 on lineKarkheh Dam and Hydroelectric PlantFarab contractorn/a
2002 on lineMasjed Soleyman Dam and Hydroelectric PlantFarab contractorn/a
operatingSeymareh Dam and Hydroelectric PlantSab, Farab, Farab International, Tablieh, Parhoon Tarh, Payab Kousar, Ziggurat, Moataber contractorn/a
operatingGotvand Olya Dam and Hydroelectric PlantFarab contractorn/a
1984 on lineTehran Fourth Water Treatment Plant (Tehranpars)Degremont contractorn/a
1970 on lineTehran Second Water Treatment Plant (Kan)Degremont contractorn/a
1967 on lineTehran Third Water Treatment Plant (Tehranpars)Degremont contractorn/a
1962 on lineSefidrud Dam and Hydroelectric PlantSaser contractorn/a
operatingDez Dam and Hydroelectric PlantImpregilo contractorn/a
1955 on lineTehran First Water Treatment Plant (Jalaliyeh)Degremont contractorn/a
Sources and notes

Years without a label are award years from the curated log; rows marked on line are dated by commissioning, from the projects register. Register rows without a commissioning date show their stage instead: awarded, with the year recorded, or under construction or operating, with no year. 18 rows in total for Iran; the 16 most recent are shown.

Repeat winners

  • Farab8 tracked awards, 1 as developer, 7 as contractor
  • Degremont4 tracked awards, as contractor
  • Machine Sazi Vijeh2 tracked awards, 1 as developer, 1 as contractor
  • NVCo2 tracked awards, as developer
  • Payab Kousar2 tracked awards, as contractor
  • Tablieh2 tracked awards, as contractor

Pipeline & tenders

Structured procurements and live tenders in Iran, drawn from the same review that maintains the pipeline tracker.

Pipeline & awards

Tenders

Prices

What households pay

What households pay in Iran
Household tariff (US$/m³)Cost of supply (US$/m³)YearSource
levy only~$0.352025/26 (levy); 2021/22 (cost)Clause (ت) of Note 7 of the 1404 budget law (Etemad Online; Nezamat); EcoIran on the Cabinet decision of 16 Dey 1403; Tehran Times, 2 August 2022, for the production cost

The 1404 budget law (Iranian year March 2025 to March 2026) requires the provincial water and wastewater companies to collect, on top of the water charge, IRR 2,000/m³ of drinking water sold up to the household consumption standard, or up to contracted capacity for non-household users, and IRR 4,000/m³ above those thresholds, paid to the National Water and Wastewater Engineering Company; the 1405 budget was not checked. The tariff itself is issued nationally: the Cabinet set water and sewerage subscription charges on the Ministry of Energy’s proposal in January 2025, and the household consumption standard varies by province. Desalination production cost was reported at about IRR 98,000/m³ (over US$0.35, the source’s own conversion) for the Iranian year ending 20 March 2022.

Residential tariffs, and the cost of supply where a utility publishes it, are kept in one place for the whole region so the comparison holds: a tariff means little without the cost it is measured against.

Watch list

No dated items have been carried forward for Iran yet. This section fills from the monthly briefings as they are published.

Sources

10 references

Project, pipeline and tender records are compiled from procurer announcements, lender disclosures and trade reporting; each project page carries its own source and the date it was last checked. Institutions are from the decision-maker directory. Economic and water indicators are cited on the reference profile.

  1. Tehran Times, “75 water desalination plants operating across Iran”, 2 August 2022.
  2. Middle East Institute, “Hope Line: Iran aims to boost seawater transfer to fight growing drought” (archived copy).
  3. MENA Water Review major projects register and PPP pipeline — compiled from procurer publications, development-bank project pages and trade reporting; each record names its source.
  4. Tehran Times, “1,000 water, power projects to be launched by March 2026: energy minister”, 28 July 2025.
  5. United States Treasury, 31 CFR part 560, subpart B: Iranian transactions and sanctions regulations, prohibitions.
  6. Council of the European Union, Council Decision (CFSP) 2025/1972 of 29 September 2025, recitals 17 and 18: the UN Security Council resolutions from 1696 (2006) re-imposed after 27 September 2025, and the EU’s nuclear-related sanctions re-imposed.
  7. Kaufmann & Kraay, Worldwide Governance Indicators (World Bank), 2025 update: political-stability and regulatory-quality scores, 0–100, shown in the market snapshot. worldbank.org/wgi.
  8. EcoIran, on the Cabinet decision of 16 Dey 1403 (January 2025) setting water and sewerage subscription charges on the Ministry of Energy’s proposal, 4 May 2025 (Persian).
  9. Etemad Online, on the water-charge clause of the 1404 budget bill, approved by parliament, 3 December 2024 (Persian).
  10. Nezamat, text of the 1404 budget law, part one (Persian), clause (ت) of Note 7.

Numbered references are linked from the superscript markers in the text. Figures without a marker come from the sources above as compiled in the site methodology.

Sources and notes

Firms appearing on two or more tracked awards in Iran. For a PPP, BOT, BOO or independent water, power or sewage project the winner counted is the developer or sponsor consortium; for an EPC or works contract it is the contractor. Each consortium member is counted on its own. EPC contractors working for a developer, subcontractors and equipment suppliers are not counted, and a PPP whose developer is not recorded counts for no firm.