Iran seeking China funding to complete metro project

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By Stanley Carvalho  www.euronews.com

ABU DHABI (Reuters) – Iran is hopeful its ally China will fund up to $2 billion (1.2 billion pounds) to complete Tehran’s metro rail which faces delays due to lack of financing as a result of sanctions, a government official said on Monday.

Tehran Metro
Tehran Metro

Phase two of the metro is on track for completion next year but two new lines under the third phase may be delayed due to lack of money, Mohammad Montazeri, deputy managing director, planning & logistics, Tehran Urban & Suburban Railway Co said.

“We are seeing funds from foreign companies. We are in negotiations with China (government, banks and agencies), we are hoping to get financing,” he told Reuters on the sidelines of the Middle East Economic Digest’s Rail Projects conference.

“If the loans come we can finish on time,” he said.

The United States and its allies accuse Iran of using its atomic programme as a cover to develop nuclear weapons and have imposed increasingly stringent economic sanctions to try to force Iran to answer questions about the program. Iran has said its program is for solely peaceful purposes, not for weapons.

Tehran initially planned to build 430 kilometres of metro lines with 256 stations at a cost of $18 billion. But as sanctions began to bite, only 261 kilometres and 175 stations were approved, estimated to cost around $10 billion, he told the conference earlier. More info

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