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Venezuela, Iran sign deal

Business Week | March 3, 2006

Venezuela and Iran have signed an agreement worth US$404.6 million (euro336.6 million) to jointly construct 10,000 homes in the South American country, the state-run news agency reported late Thursday.

Under the deal, four projects of 2,500 homes each will be built in 15 months by Iranian company Keyso Corporations, said the Bolivarian News Agency, or ABN.

Venezuela and Iran also are collaborating on projects to manufacture tractors and auto parts and to produce cement here.

Last month, the two countries also agreed to create a joint US$200 million (euro168 million) development fund.

Iran has become the closest Middle East ally to President Hugo Chavez's government. That has alarmed Washington, which believes Tehran is using its nuclear energy program as a cover for producing an atomic bomb and has sought to censure it.

Chavez, a fierce critic of Washington, has sought to build alliances to counter what he calls U.S. imperialism.

He also has expressed interest in developing a nuclear program for peaceful energy.

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