May 16, The Iran Project - Chinese investors will finance a project of electrifying the most traffic railroad linking Tehran to the holy northeastern city of Mashhad, Iran.

Following one of the main programs of Iran’s Ministry of Roads and Urban Development to electrify the most traffic railways of the country, namely the railway line linking Tehran to Mashhad, three comprehensive plans were developed but given the financing need, they have not been implemented yet.

So the Iranian government, seeking to attract foreign investment, negotiated with some foreign countries, especially China.

Iranian deputy minister of transportation, Saeed Mohammadzadeh said in this regard that after some negotiations, China agreed to provide Iran with € 2 billion in loans to help finance the key rail project, adding the Chinese funding for the project could be received in May.

Also, Germany’s Siemens has already announced serious plans to help Iran for the development of Tehran-Mashhad railway.

Officials in Tehran said last year that talks were underway with Siemens to acquire high-speed trains from the company through 30-year leasing deals.

The electrification project, headed by a consortium which sees MAPNA Group at its head, aims to electrify the 926 km railway from Tehran to the city of Mashhad, Iran’s primary pilgrimage site which attracts tens of millions of visitors each year.

The project envisages reforms and construction of the current Tehran-Mashhad railroad for trains with 200km/h speed, electric railroad for trains with 250km/h speed and purchase of 70 electric locomotives.