Potential of Kermanshah City

Kermanshah Province is located at a mountainous region, with a land area of 25,900km², in Western Iran and the border of Iraq. This province is 1200m above sea level. Of this land, 36% is agricultural lands, 19.85% is forest lands, 44% is pastureland, and 0.2% is housing lands. This province is located at the main rout of East-to-West and Northwest to Southern regions directions, and the main route of Iraq. Kermanshah Province has a diversified weather due to its geographical situation and being located at Zagros Mountain Chains; insofar as it is known as a four-season province. Kermanshah Province has natural and ancient attractions with a rich historical background. Based on foreign travelers, this province ranks the 3^rd place following Shiraz and Shush Counties in terms of the number of ancient relics. This province, with a population rate up to 2 million people in 2015, has a landscape of demographic window of which up to 70% of population is on active age; 70% of population is urbanite and about 50% is living in Kermanshah City; and in terms of population, it is the most crowded city in Western Iran being the main center of visits and the passage of Western provinces and the Kurdistan Region of Iraq. According to findings, this province has the centrality of 18-million populations living within a 250km radius of the city.

Investment Fields and Potential

• Mining and Industry: Kermanshah Province has 1000 industrial units with an investment volume of 15000 billion Tomans. In addition, there are 2000 uncompleted industrial plans in the province needed more than 30000 billion Tomans of investment. Decorative stones, silica, manganese, maroon, dolomite, lime, etc. are of the main minerals of the province of which Harsin and Faraman regions’ stones have global reputation. There is 70% of Iran’s bitumen in this province. There has been a low level of investment in the field of steel industry that it extremely requires investment. Thanks to export strategic position of the province, experts with competitive wage, the presence of 24 industrial estates with full facilities, abundant water, access to energy resources as well as incentives and exemptions, the condition to invest in this field is very suitable.

• Agriculture potential: Kermanshah Province, with an area equal to 25900m², is located at Western Iran on the border of Iraq. Of this land, 36% is agricultural lands, 19.85% is forest lands, 44% is pastureland, and 0.2% is housing lands. This province has high potential for different branches of farming and animal husbandry. Kermanshah Province is one of the richest provinces of the country in terms of herbal species diversity. About 208 species of medicinal plants are grown in this province. In 2016, the amount of wheat harvest has been up to 968033 tons. Kermanshah Province ranks the 1^st in terms of pea’s under-cultivation area and harvest in the country, with a production about 78000 tons. Annually, more than 60000 tons of fruits including apple, cherry, and walnut are produced in the province. The climate diversity itself has led different products to be supplied to the market in periodic intervals. Given appropriate climate, soil and water, climate diversity, Kermanshah Province is the pole of producing various products and prone to converting industries, rugs, animal products, diaries, etc. Thanks to tax and dues-payment exemptions, bank facilities with the minimum interest, transferable land with minimum rent as well as cheap workforce, this province takes many advantages for investment in the fields of agriculture, animal husbandry, packaging, cultivation and industry, converting industries, and veterinary clinics.

• Road, urban development, and urban services: Kermanshah Province is located at the main path of Iran’s East-to-West roads, Northwest to Southern regions roads, and the main transit path of goods and services to Iraq. This province is located on the way of Karbala pilgrimage route and commodity transit to Iraq having the shortest distance with crowded cities of Iraq such as Bagdad. Kermanshah Province, especially Kermanshah City, thanks to its strategic position in Western region, crossing of millions of pilgrims, prominent civic history, rich art and culture, the presence of tourism centers and natural attractions, is very apt to invest in the fields of developing highways, railroads, the LRT, tourism and recreational complexes, welfare complexes, telecabin, hypermarket, parks, exhibitions, and cultural centers. Moreover, there are exemptions related to dues, license issuance, providing facilities for usage change, declining the time of issuing licenses in the field of urban reconstruction plans, tourism and co-operative investment projects.

• Cultural Heritage, Handicrafts, and Tourism: Kermanshah Province takes advantage of a wide range of natural, cultural and historical attractions. This province has 50 elected tourism regions approved to create great tourism plans with diversified tourism usages. Climate diversity and having different architectures provide a special opportunity to investors in order to invest with a traditional approach. In this regard, 14 tourism villages have been registered. In the field of handicrafts, there are 60 branches with continuous activity and up to 4000 monuments have been identified in this province of which the number of 2200 registered works is listed in the national works as well as 1 global work, i.e. the Bistoun Site. Thanks to a 5-year tax exemption, dues payment and construction costs with industry tariff and receiving it in installment in 10 years, usage change exemption, free-of-charge supply of infrastructure and social insurance of workers, this province is very apt for investment in the fields of tourism, hotel construction, eco-tourism, etc.

• Healthcare: There are 1.7 bed/1000 persons in Kermanshah Province, in 2016, indicating the shortage of 1655 beds in the province compared to the national standard index. The presence of the University of Medical Sciences with 16 specialty majors, high capacity of the province to give training and subspecialty services in Western Iran, proximity to Iraq and the Kurdistan Region of Iraq, pristine nature in terms of medicinal plants and unique experts in Western Iran have led this province, and especially Kermanshah City, to be the best place for investment in the fields of hospital construction, health estate, manufacturing hospital equipments, pharmacy, etc. The plans of this section include facilities such as supplying infrastructure by the government, obtaining licenses, 50% tax exemption for 10 years, the possibility of using finance and currency fund facilities.

The Province’s Infrastructure and Transformation

Communication ways, including road, railway, and airway, are of the main progress and development infrastructure. Kermanshah Province is located at the main path of Iran’s East-to-West roads, Northwest to Southern regions roads, and the main transit path of goods and services to Iraq.

• Land Ways: The length of land ways of Kermanshah Province is 2796km. The main way of Karbala pilgrimage route crosses the province and passes through Hamedan to Kermanshah, and then, the Khosravi Border. Meanwhile, a branch of it gets to the Mehran Border which is closer to the capital of Iraq, i.e. Bagdad City. Approximately, half of industrial estates and the two special economic zones are located on the way of this road. It is the main route of goods transit to Iraq.
• Airways: This province has the largest airport in Western Iran, with the movement capacity of about 960000 passengers. In addition to the province itself, Kermanshah Ashrafi Esfahani Airport meets a great part of transportation needs of neighboring provinces(Kurdistan, Ilam, Lorestan) as well as the Holy Shrines pilgrims in Iraq.
• Railways: Tehran-Kermanshah-Khosravi Railway was also operated in 2016. This railway starts from Tehran and passes through cities such as Malayer, Kangavar, Sahneh, Kermanshah, Sarpol-e Zahab, and Qasr-e Shirin, and finally, gets to the Khosravi Border. It is going to be connected to Iraq railway, and then, the Port of Latakia in Syria, Mediterranean Sea and Europe. Kermanshah Province is located on the way of Karbala pilgrimage route and commodity transit to Iraq having the shortest distance with crowded cities of Iraq such as Bagdad.

Special Economic Zone:

Special zones have been created with the aim of stimulating regional economy, making international commercial connection, and mobility in commodity production and process, non-oil export, attracting and persuading domestic and foreign investors, re-exportation, transit and transshipment of goods in a scope of the mainland. Kermanshah Province, with its strategic position in proximity to Iraq, has two special regions in Eslamabad-e Gharb and Qasr-e Shirin Counties.

• Zagros Special Economic Zone: This zone takes advantage of an extraordinary strategic position located adjacent to Eslamabad-e Gharb City, and on the way of Karbala route, and railroads at the intersection of Parvizkhan Border, Mehran Road, and Khoszestan Road. Near to this county, there are rich mineral resources and abundant water. This region has been considered to invest in activities such as constructing chemical metal and non-metal industries, converting industries, packaging and warehousing, and investors are faced with minimum import and export formalities
• Qasr-e Shirin Special Zone: Given primary studies, proximity of Qasr-e Shirin Special Economic Zone to Iraq and business exchanges of Iraqi and Iranian merchants, production and industrial activities of required items is considered as the main approach to operate in this region. Compared to Zagros Special Zone, this zone plays the main role of transit, export and import. In this plan, Qasr-e Shirin Special Economic Zone has been allocated to manufacturing and industrial units as for non-polluted and required items of Iraq including food industries, cellulose, electrical, non-metal mineral, etc. This zone takes advantage of infrastructure such as water, electricity, gas, and telecommunication, having little distance to the main road, and the railway project is approaching this region. Kermanshah Provincial Government is responsible for the project; thus, the highest level of cooperation is done in supplying infrastructure, licenses and rights of Qasr-e Shirin Special Economic Zone.

The Province’s Industrial Estates:

Kermanshah Province has 24 public and private industrial estates and regions, and currently, owning more than 2000hr of land of which 1400hr is ready to be delivered to investors. All of the estates take advantage of infrastructure facilities including water, electricity, gas, telecommunication, sewage system, and green space, and most of them are located at the main transportation route. Being located at industrial estates makes investors to be free of obtaining different licenses, the land is delivered according to engineering principles and an appropriate price with easy payment, and freely in some projects, and the estates are exempted from municipality regulations. Moreover, there are the required infrastructure and full facilities such as road, water, electricity, gas, industrial sewage, telecommunication, internet, optic fiber, insurance offices, bank, emergencies, technological service, etc.

The Province’s Customs

Kermanshah Province has 330km common border with Iraq, with two international customs, i.e. the Parvizkhan and Khosravi Customs, and three marketplaces including the Shoushemi, Sheykh Salleh, and Soumar Marketplaces, playing as a facilitator regarding export and commercial trades. The Parvizkhan Customs is located at a distance of 5km to Qasr-e Shirin County and 180km to Kermanshah City.

The Parvizkhan Customs: This customs and marketplace is one of the economic poles of the country having an area of 30hr, and it is going to be risen to 400hr. Up to 50% of Iran’s non-oil export to Iraq is done through this customs. The Parvizkhan Customs, which is located at the way of the Silk Road, daily passes 800 to 1000 trucks with export freight. In this customs, some affairs such as definitive export, temporary entry of car and truck, temporary exit of automobile, foreign transit and travel affairs, definitive import are done.

The age of the Khosravi Customs is more than 100 years. It is located at a distance of 20km and 200km from Qasr-e Shirin County and Kermanshah City, respectively. The Khosravi Border is one of the official international terminals of Iran making land connection of this country with the Arabic part of Iraq. Definitive export, definitive import, temporary exit, temporary entry, judicial, foreign transit(origin and destination), cooperative and travel affairs of frontiersmen are of the legal procedures of the Khosravi Border.

The Shoushemi(at zero-point border and in a distance of 45km from Western Paveh County), Sheykh Salleh(in Javanroud), and Soumar Marketplaces(in a distance of 67km from Gilan-e Gharb) have been made in order to do border exchanges of peddlers and their main application is definitive export and import of peddlers. Soumar is one of the strategic terminals of the province with the shortest distance between Kermanshah and Diyala Province of Iraq.

The current important economic enterprises and industries:

Kermanshah Province has 1027 industrial units with an investment rate of about 40000 billion Rials and employment rate of 30000 persons. The share of Kermanshah Province in terms of the number of industrial units in the country: 1.5%, the level of investment: 2%, and the employment rate: 0.04%. Accordingly, from the industrial viewpoint, this province ranks 23^rd in terms of the number of industrial units, 21^st in terms of investment level, and 18^th in terms of employment rate, compared to national status. Petrochemical products, automobile, metal profiles and bullion, girder and angle iron, tire cord, high-voltage cable, tomato paste, tile and ceramic, cement, a range of China sanitary ware, machine-knotted rugs, a range of diaries, edible oil, and sugarcane-based sugar are of the main products of the province that some of them are as follows:

In industry sector, Kermanshah petrochemical, Bistoun petrochemical, Saman cement, Garb cement, Jahan Folad-e Gharb Complex, and the Cooperative no.1820 are of the most important industries of the province, and in total, producing 660000 tons of Urea and Ammonia, 49000 tons of linear alkylbenzene, 300000 tons of polyethylene, 3.6 million tons of cement, 300000 tons of a range of rebar and girder, and 18000 tons of tier belt and cord. Three large companies, i.e. Cord Group, Kazheh Tile, and Bistoun Tile, are working in the field of tile and China sanitary ware, and with a total investment rate of 966000 billion Rials and an employment rate of 1900 persons, totally producing 24.5 million m² of tile, ceramic and sanitary ware.

In agriculture sector, Mahidasht Cultivation and Industry Complex, Rojin taak Agro-industry Complex, Bistoun Sugar and Eslamabad-e Gharb Sugar Complexes, Manizan Dairy Co. are of the most important industries of the province producing 9000 tons of vegetable oil, 40000 tons of tomato paste, 145000 tons of sugar, and 48000 tons of dairy, respectively.