The Ministry of Roads and Urbanization has announced the latest status of Indian and South Korean investments in Iran’s railway projects.
Iran is in talks to finalize Indian investment for the Chabahar-Zahedan-Birjand-Mashhad rail project. Indian Ircon International signed an agreement to construct the 500 km Chabahar-Zahedan railway in May 2016. However due to slow progress, financing for this project expired in April 2017.
“In our visit to India last September, the Indian company expressed interest in investing in this railway to the Indian Government. We are currently awaiting the Indian Government’s response for Indian investment in this project”, said Deputy Minister, Keirollah Khademi.
This project requires at least 1.5 billion dollars in financing. “The Indian party has proposed to fund the project in three stages; our response however was single stage financing”, added Mr Khademi.
Another railway project for which Iran is seeking investors is the 600 km Isfahan-Ahwaz railway. This project requires 5 billion dollars in financing. In the South Korean president’s visit to Iran last year, the topic was discussed and an agreement was signed.
“South Korea’s Daelim has been conducting studies on the project for the past year. The Korean partner is keen on a financing plan whereas the Ministry of Roads and Urbanization has requested investment and co-operation in construction by the South Koreans”, concluded Mr Khademi.