Iran finalizing plan on Chinese fund for railroad electrification

Business Materials 20 June 2015 13:41 (UTC +04:00)

Tehran, Iran, June 20

By Mehdi Sepahvand - Trend:

Iran is pushing through its final stages a plan that would have China fund the electrification of the Tehran-Mashhad railroad.

Reportedly, a $2 billion funding would allow the project to get on stream in the current Iranian fiscal year (which ends on March 20, 2016).

Qasem Saketi, the manager of the project, said that all the necessary permissions have been received and will be introduced to the Chinese insurance company Sinosure, Fars news agency reported June 20.

Once the Chinese company receives the advance payment, it will have 42 months to complete the project, the official said.

The railroad connects capital Tehran to the religious tourist hub Mashhad.

It transports 14 million people every year and the old diesel system is not enough to meet the current demand.

The project to electrify the railroad was to start in 2007 but has had virtually zero progress.