S. Korea, Germany to Finance Development of Iran Electric Trains
TEHRAN - Iran’s Deputy Minister of Roads and Urban Development says South Korea and Germany will provide funds for the development of electric trains in the Islamic Republic.
Asghar Fakhrieh-Kashan declared that South Korea will provide funding to construct a double-track railway between Iranian cities of Isfahan in the centre and Ahwaz in the south.
Seven electric locomotives will also be purchased for Tehran-Isfahan route using the funds provided by Germany, he added.
IMNA quoted him in a report that there was no limit for any of the ministries and departments to use the $55 billion finances approved in the budget.
“Up to now, over $30 billion worth of these funds have been allocated, and the Ministry of Roads and Urban Development has proposed projects to spend $10 billion to $12 billion of the finances,” added the deputy minister.
He went on to say the ministry has undertaken projects to get $5 billion worth of foreign loan for their implementation. So, we are in the final stages of signing a contract with Russians to receive a 1.2 billion euros funding to run electric trains in Garmsar-Inche Boroun railway. (Garmsar is a small city in the southeast of Tehran and Incheboroun is a border city in the northeast).
“Of course, part of this $5 billion resource will also be allocated to the Ministry of Energy projects,” he noted.
This Iranian officials further mentioned that negotiations on a $500 million loan from Azerbaijan Republic to finance the construction of Rasht-Astara railway in northern are underway.
Fakhrieh-Kashan stated that Iran’s Central Bank has concluded talks with Exim Bank of China to complete Tehran-Mashhad railway project, saying that the same pattern of negotiations and signing contracts would be followed in other projects as well.
“At the moment, we are finalizing a €3 billion financing contract with a specific German company for a specific project, of which €1.7 billion would be allocated to the Ministry of Roads and Urban Development.”
The Deputy Minister of Roads and Urban Development announced the German delegates will visit Iran in the near future to finalize the €3 billion funding.