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Iran & Russia Sign 1.2 billion euro Railroad Deal

railway2mountainsRZD International, a subsidiary of Russian Railways, and Islamic Republic of Iran Railways signed a 1.2 billion Euro contract for the electrification of the 495-km route from Garmsar on the Tehran–Mashhad main line to Incheh Borun on the border with Turkmenistan.

Oleg Belozerov, President of Russian Railways, and Said Mohammadzadeh, Chairman of the Board and President of the Joint-Stock Company Islamic Republic of Iran Railways, have signed a memorandum on strategic cooperation on railway electrification.

The scope of the work includes undertaking electrification, track laying, signaling, and telecoms enhancement to increase the route’s capacity. It also covers the supply of maintenance vehicles and electric locomotives and extension of technical assistance in the first year of electrification.

The work is scheduled to take four years and will start as soon as the governments finalize a 1 billion euro Russian export loan, which is to be repaid over five years with a 2.77% annual interest rate.

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