South Korea to build railway worth €4.5B in Iran

Business Materials 3 May 2016 16:39

Baku, Azerbaijan, May 3

By Fatih Karimov - Trend:

South Korean engineering and construction firm Daelim has signed a €4.5 billion contract with Iran to build a railroad, Ali Nourzad, Iran's Deputy Minister of Roads and Urban Development Ali Nourzad, said.

Under the deal, the South Korean firm will construct a 540-kilometer railway from Isfahan city to Khuzestan province within four years, Nourzad said, ILNA news agency reported May 3.

The project will be financed under BOT (Build-operate-transfer) and BLT (build-lease-transfer) arrangements, Nourzad said.

He further said that the preliminary works on the project will start in the next six months.

The railroad is expected to transfer about 6.7 million tons of fright in first year of its operation, he said, adding the figure will reach 22 million tons by 2036.

On May 1, South Korean President Park Geun-hye heading a large business delegation arrived in Tehran on a historic visit. Park Geun-hye is the first South Korean president who visits Iran.

During the three-day official visit, the two countries have discussed several deals worth billion dollars for cooperation in various fields.