Iran to sign 10-year BOT contract with India

Business Materials 24 August 2020 12:30 (UTC +04:00)
Iran to sign 10-year BOT contract with India

TEHRAN, Iran, Aug. 24


Head of Iran's Ports and Maritime Organization (PMO) Mohammad Rastad said India still has projects underway in Iran`s Shahid Beheshti port, Trend reports citing ILNA.

"Currently, a temporary operation contract is underway with an Indian company in Shahid Beheshti Port. The Indians have committed to supply equipment, including the mobile cranes, which will be provided this year,” Rastad said.

Emphasizing that the main contract does not only include the supply of port equipment and the two sides are negotiating some clauses of the main contract.

"It seems that there will be no problem to sign a 10-year Build–operate–transfer (BOT) contract with Indians in Shahid Beheshti port,” he added.

Rastad also stated that currently the withdrawal of Indians from the project is not on the agenda and both parties are looking forward to signing the main 10-year contract.

“Currently, the Chabahar port is actively operating despite the novel coronavirus pandemic,” said Rastad.

Rastad added that "In addition to the shipment of donations of wheat from India to Afghanistan, we had several refrigerated transit shipments from Afghanistan to India."

“By continuing this trend, Chabahar port will strengthen its position in international trade and transit in the region,” he said adding that “Afghans are ready to use this transit route to India.”

He stressed that "Iran, Afghanistan, and India are very motivated to keep this route active.”

Referring to the timing of the arrival of port equipment to Shahid Beheshti port he says that the total value of the Indian equipment is around $85 million.

Following the news of India's withdrawal from the Zahedan-Chabahar railway construction project, rumors were spread about the possibility of removing the Indian operators from Chabahar port. About one year remains on the temporary operation contract of the Indian operator and an additional 10-year extension is under consideration, ILNA reported.