Completed Development AidData Chinese Aid

Chinese Government pledges $2 billion loan for Parts 2 and 3 of Tehran North Freeway Construction Project (Linked to Record ID#67090)

$2M USD

Funder	Unspecified Chinese Government Institution
Recipient Organization	Tehran-North Freeway Company
Country	Iran
Start Date	Jan 01, 2015
End Date	Jan 03, 2026
Duration	4,020 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`41232`

Grant Description

Chinese Government pledges $2 billion loan for Parts 2 and 3 of Tehran North Freeway Construction Project On September 22, 2015, China Communications Construction Company, Ltd. (CCCC) signed a memorandum of understanding (MoU) worth $2 billion with Tehran-North Freeway Company for Parts 2 and 3 of the Tehran North Freeway Construction Project.

The project was initially designed as a 121 km long freeway in 4 parts (sections).

Part 2 was a 23 km section (including a 6.5-km tunnel and a 16.5-km highway) and its total cost was approximately $500 million. Part 3 was a 45 km section and its total cost was approximately $1.5 billion.

The project was implemented by a consortium of China Railway Tunnel Group, China Shanghai (Group) Corporation for Foreign Economic & Technological Cooperation, and Federal Asia Shanghai Import & Export Co., Ltd. By 2020, Parts 2 and 3 had yet to be completed.

According to the head of Iran’s Islamic Revolution Mostazafan Foundation, Part 2 was scheduled to reach a 50% completion rate by 2021-22.

📋 Staff Comments

The Chinese project title is 德黑兰北部高速公路 or 德黑兰-肖玛尔高速路二、三阶段 or 伊朗德黑兰北部高速公路项目。2. On July 7, 2005, ICBC signed a $180 million export buyer's credit agreement with Tejarat Bank of Iran to construct Part 1 (Section 1) of the Tehran-North Highway (Freeway) Construction Project (as captured via Project ID#67090). The purpose of the project was to construct a 32 km highway segment that runs from an interchange with Azadegan Expressway and Hemmat Expressway in northwestern Tehran city (Municipality District 21) to Doab, Shahrestanak, Alborz Province. Construction of Part 1 began in February 2006. The project had achieved an 83% completion rate as of May 3, 2017 and was originally scheduled for completion in August 2017. However, it encountered multiple delays, and its expected completion date was eventually pushed back to February 2020. Section 1 ultimately opened for test service on February 12, 2020 and it officially opened on February 25, 2020.
In March 2014, Part 4 (Section 4) of the Tehran-North Highway (Freeway) Construction Project, which is 20 km long and connects Marzanabad to Chalous, was officially inaugurated. It was later closed to the public due to technical problems.
On January 26, 2018, Iran’s Islamic Revolution Mostazafan Foundation and China Railway Academy Company (CRAC), a subsidiary of China Railway Group Limited, signed a MoU regarding the financing and construction management of Section 3 of Tehran-North Freeway.

📚 Sources & References

Chinese Contractor Beings Tehran-North Freeway Project
Iran and China build $180 million road tunnel
Chinese said to fund stalled highway to Caspian
CHINA SET TO FINANCE TEHRAN-SHOMAL FREEWAY
IRAN
CHINA SIGN AGREEMENT TO BUILD TEHRAN-SHOMAL HIGHWAY
Iran and China sign agreement to build freeway, [TEHRAN-SHOMAL] HIGHWAY U/C (NEWS N UPDATE)
Iran and China sign agreement to build Tehran-Shomal Freeway
China agrees to finance Tehran-Caspian road
中铁隧道董事长郭大焕赴伊朗德黑兰北部高速公路项目检查工作
德黑兰北部高速公路融资签字仪式日前举行
Tehran-North Freeway MoU With China
Section-1 of Tehran-North Freeway to Come on Stream by Feb. 19
中国对伊朗投资解冻签德黑兰-北方高速公路项目备忘录, 'China Bridge' in Tehran-BR-06 Extra Large Bridge in Tehran
Iran
Tehran North Freeway
Tehran-North(Section 1) Highway to Open Before Winter
Iran
China sign agreement on construction of tunnel.
China to build Tehran-North highway.
China Communications Construction to build Iran’s North Highway project Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.