Turkmenistan decided to terminate the contract for the construction of the railway which was signed in 2010 with the Pars Energy company of Iran. The Iranian company, for some economic reasons, could not finish the project that it was based in Turkmenistan. This was discussed in the Council of Ministers, chaired by President Gurbanguli Berdimuhamedov. Foreign Minister and Deputy President Rashid Meredov said that after the talks with the Iranian side, they agreed on bilateral termination of the contract.
President Berdimuhamedov, Iran, the company agreed with the termination of the contract, said they will build this project with their own means. He said that the project they gave to Iran was part of the Kazakhstan-Turkmenistan-Iran railway line, and that the railway line project was a very profitable project not only for its own country but also for the countries of the region.
The Pars Energy Company of Iran had agreed in 325 with the Turkmen side to build the Bereket-Etrek railway line, which has a total length of 696 kilometers to 2010 million dollars. For the construction of the railway line, the 371,2 borrowed a million dollars from the Islamic Development Bank, while the remaining $ 324,8 of the project was expected to be paid by the Pars Energy company of Iran. The Kazakhstan-Turkmenistan-Iran railway line laid in 2007 will unite the Central Asian region into the Persian Gulf. The line, which is expected to contribute to the descent of the countries in the hot seas, will allow the increase of freight transportation.