Iran’s Deputy Minister of Roads and Urban Development Abbas Khatibi announced that Iran has a MoU with India’s state-owned IRCON that is associated with LPG Company in India, which is active in the development of infrastructure and operations of the Shahid Beheshti port of Chabahar city in Iran.
“Since the start of the Chabahar-Zahedan Railway project, Iran has been looking to attract funds from various sources in addition to the state budget. The progress of the project was due to having financial resources, otherwise it would be impossible to do this volume of work,”Khatibi said.
“We knew that the budget resources for the implementation of this plan were not enough, and other methods should be used to access more resources. So, last year we had talks with India’s state-owned IRCON company that led to the signing of a MoU in late February last year, regarding the company’s investment in the construction of a part of the Chabahar-Zahedan railway,” he said.
“The duration of that memorandum expired, but at the end of August we renewed the contract,” he added. “The entire railway of Chabahar-Zahedan will be built with 1.5 billion USD.”
Speaking of the amount of money from Iran’s budget for the construction of Chabahar-Zahedan Railway, Khatibi said that the budget for the completion of this railway has not yet been finalised.
“The amount of money that we have proposed is about 36 million USD. Aside from this, we use other sources and do not just rely on public budget,” he explained.