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Given the increased sanctions pressure on Iran, BMI believes that the country will struggle to maintain momentum on its wide array of infrastructure projects. The key factor undermining performance is the financing difficulties that will be encountered - and are already evident - by state entities planning large transport, construction and energy-related ventures. Though opportunities are vast, many construction, utility and energy groups remain wary of signing contracts with Iranian companies. In this respect, the UN/US/EU backed sanctions have proved increasingly effective in starving the Iranian infrastructure sector of investment.

Nonetheless, there have been a series of developments on key projects over recent months:- There are plans to expand Iran's main airports, with Iranian Airports Holding Company looking to attract in excess of US$1bn in investment into the aviation sector. The main ongoing expansion project is the Imam Khomeini airport in Tehran, which is to be tripled in capacity to 20mn passengers a year, before hitting its peak capacity of 90mn passengers a year - a long-term target that appears highly ambitious in the current climate.