Russia and Iran sign EUR 1.2 billion rail contract

iranOn December 13th, RZD International and Islamic Republic of Iran Railways signed an additional agreement of the contract for the design, supply of materials, equipment and construction for the Garmsar – Inche Bouroun rail electrification. The values of the contract is EUR 1.2 billion.
The agreement was signed during the 13th session of the Russian-Iranian intergovernmental commission on trade and economic cooperation.
The document establishes the general and special conditions of the contract, as well as the cost of materials, equipment, design and construction works.
The project will be financed by the state export credit granted by the Government of the Russia to the Government of Iran. The corresponding agreement was also signed in the course of the session.
The project involves the electrification of the Garmsar – Inche Bouroun railway line with the total length of 495 km, including 203 km in the mountainous area. The line also comprises 31 stations and 94 tunnels. The contractor will build 7 traction substations, 8 sectioning posts, 6 OHL service, repair and maintenance stations and an office building for the railway line’s electrification department. The contract also provides for supplying of new locomotives and track machinery as well as training of Iranian railway specialists in Russian railway universities. The contract is estimated to be completed in 3 years.
In January 2014, the heads Iranian railway company proposed to Russian Railways to consider the possibility of participating in a number of infrastructure projects in the country. Among the top priorities of the Iranian side was designated a project of electrification of the railway line Garmsar – Inche Bouroun.

Photo: Tedem


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