China's 1.5 billion dollar rail deal with Iran

China signed a contract with Iran to finance the electrification of a 1.5 km railway with a $ 926 billion loan from Tehran to the eastern city of Mashhad.

According to the news in the Iranian media financialtribune, according to the agreement signed in Tehran, the electrification project will be carried out by the Chinese National Machinery Import and Export Company (also known as CMC).

CMC, a subsidiary of China General Technology Group, is an international engineering contractor in transportation infrastructure, industrial facilities and power plants. In 2014, the company established the Ankara-Istanbul high-speed railway along with China Railway Construction Corporation Limited and Turkish companies.

Asghar Fakhrieh-Kashan, Iran's minister for roads and urban development, said the project is worth 2.2 billion euros, and two-thirds of that value will be financed by the Chinese government at a very low interest rate. The remaining two thirds will be covered by the Chinese insurance company Sinosure (China Export and Credit Insurance Company). Iran's MAPNA Group is the main local subcontractor of the project.

Source : I



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