Tehran Metro Line projects

Description

The Tehran Metro is a sophisticated urban rapid transit system serving Tehran, developed over many decades. This project specifically involves segments of Line 1, Line 2, and Line 4, which were built and financed by Chinese institutions. China’s funding has been provided incrementally through state loans, export credits, and machinery turnkeys, each targeting specific lines.

History

On November 24, 2002, 14 Chinese banks — including Bank of China, China Construction Bank, Bank of Communications, Agricultural Bank of China, China Eximbank, China Everbright Bank, Huaxia Bank Co., Ltd., and China CITIC Bank — issued a $269 million syndicated buyer’s credit loan agreement with Bank Tejarat of Iran for the Tehran Metro Line 1 Construction Project. China CITIC Bank contributed $50 million to the syndicate. Bank of China contributed $994,672.71. The individual contributions of the other Chinese banks are unknown; In November 2002, Tehran Urban and Suburban Railway Company (TUSRC) and CITIC Group Corporation Ltd. signed a $275 million commercial (EPC) contract for the Tehran Metro Line 1 Northern Extension Project. on June 15, 2004, China North Industries Corporation (NORINCO) signed a $836,000,000 engineering, procurement, and construction (EPC) contract with TUSRC for the Tehran Metro Line 4 Construction Project. In 2004, China Eximbank provides buyer’s credit loan for Tehran Metro Line 4 Construction Projec (estimated at $710.6 million)t; In 2013, Chinese Government provides $81.43 million loan for Tehran Metro Line 2 Eastern Extension Project.

Finance