The Iran Project - A senior official from Iran's transportation ministry has announced that a Chinese company has been awarded a contract to develop the country's largest international airport.

Saeid Chalandari, CEO of Imam Khomeini International Airport (IKA), revealed that Iran will invest at least 2.5 billion euros ($2.7 billion) in the construction of a second phase at the airport under the agreement with the unidentified Chinese firm.

Chalandari explained that the company was selected after extensive negotiations with both domestic and international contractors.

He also stated that Iran will use a barter mechanism, exchanging crude oil for financial resources, equipment, and technical services, to fund the project.

Chalandari expects construction on the new terminal to commence by late September.

Located southwest of Tehran, IKA is Iran's largest airport and serves 29 major international airlines with flights to 64 destinations worldwide.

Despite previous setbacks due to US sanctions, Iran plans to transform IKA into a regional aviation hub through various expansion projects.

The second phase of development will cover 410,000 hectares of land south of the airport and will feature modern equipment and infrastructure, operating independently from the existing facilities.

Washington reinstated its sanctions against Iran in May 2018 after leaving a United Nations-endorsed nuclear agreement with the Islamic Republic and five other countries. It claimed that humanitarian supplies are officially exempted from the restrictive measures.