Iran’s media reported on Monday that European and Asian banks are looking into the prospects for investing in Iran’s water and electricity development projects.

The Persian-language Tasnim news agency reported that a delegation from a South Korean bank last week met officials from the Energy Ministry to study Iran’s investment potentials in the area of water and electricity.

Tasnim said the focus of discussions were the problems with the banks that the enterprises in the area of water and energy usually face in Iran including obtaining guarantees as well as loan payments.  

Such problems do not belong only to projects for private sector enterprises, added the report. Rather, certain projects that belong to the state including the construction of dams as well as power transmission facilities are facing similar problems, Tasnim added.    

The South Korean delegation was also briefed on the projects in this sector that have been suspended due to problems in attracting the necessary funds.

Tasnim added that similar discussions had also been held with delegations from certain European banks. None of them have been named in the report.

Iran’s Energy Minister Hamid Chitchian said in August that the country is lining up water and electricity projects worth $50 billion for investment after the removal of sanctions.

“About $50 billion of projects have been defined and sent to President (Hassan Rouhani) for presentation to domestic and foreign investors amid hopes they will generate good dynamism in this sector,” said Chitchina.

He further added that his ministry has drafted more than 800 national projects which are expected to take about 20 years to complete.

Iran is faced with a serious drought which is straining the country's water resources and power generation capacities.

Record temperatures have compounded the problem, causing electricity consumption to peak and putting the country at the brink of widespread blackouts and brownouts.