Active Development AidData Chinese Aid

Chinese Government provides $81.43 million loan for Tehran Metro Line 2 Eastern Extension Project

$81.43M USD

Funder	Unspecified Chinese Government Institution
Recipient Organization	Tehran Urban and Suburban Railroad Company
Country	Iran
Start Date	May 01, 2013
End Date	Nov 05, 2030
Duration	6,397 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`95732`

Grant Description

Chinese Government provides $81.43 million loan for Tehran Metro Line 2 Eastern Extension Project In May 2013, an unspecified Chinese Government institution and Tehran Urban and Suburban Railway Company (TUSRC) — an Iranian state-owned company — signed a $81,430,000 loan agreement with Tehran Metro Line 2 Eastern Extension and Southern Repair Project.

📋 Loan / Grant Terms

💰 Loan Amountwas insured (mostly likely by Sinosure) and it carried a 8-year maturity and no grace period

📅 Maturity8 years

Its interest rate is unknown.

However, it is known that the borrower expected to make payments for principal, interest, fees, and insurance worth $128,372,000 — in nominal terms — over the lifetime of the loan.

It is also known that the borrower was expected to use the loan proceeds to finance approximately 85% of the cost of a $95,800,000 commercial contract between TUSRC and an unspecified Chinese company.

Tehran Metro Line 2 (德黑兰地铁2号线), which opened between the Sadeqieh metro station and the Imam Khomeini metro station in February 2000, is 20.4 kilometers long, with 19 kilometers as a subway and 1.4 kilometers elevated.

The Tehran Metro Line 2 Eastern Extension Project is expected to involve a 24.7-km extension of Line 2 from Farhangsara metro station (ایستگاه مترو فرهنگسرا) to the east.

Upon completion, it is envisaged that the line extension will have three stations, namely Tehran East Terminal, Tehran-Pardis road toll and Pardis Technology Park in the far east of the capital. Studies for the Tehran-Pardis metro construction started in July 2019.

Then, in March 2020, Khatam-al Anbiya Construction Headquarters — an Iranian engineering arm of the Islamic Revolution Guards Corps — signed an agreement worth 40 trillion rials ($135.5 million) with New Towns Development Company to implement the project.

📋 Staff Comments

1. This project is also known as the Tehran Metro Line 2 Eastern Extension and Southern Repair Project. The Chinese project title is 伊朗德黑兰地铁2号线项目. The Persian project title is پروژه توسعه شرقی خط 2 مترو or طرح تكميل نيمه شرقي خط 2 متروي تهران و تعميرگاه جنوب.

📚 Sources & References

Iran seeking China funding to complete metro project, مصوبه شوراي اقتصاد در خصوص تكميل نيمه شرقي خط دو (2) متروي تهران و تعميرگاه جنوب با استفاده از تسهيلات فاينانس (موضوع توافقنامه دولت چين) توسط شركت راه آهن شهري تهران و حومه (مترو)
TUSROC – Tehran Metro Line – Iran
Supply Iran with 100 subway cars
Completion of the eastern half of Line 2 (2) of Tehran Metro and South Repair Station using financial facilities by Tehran and Suburban Railway Company (Metro) - approved on 05/05/2013
Tehran Metro seeks financing sources
China to Supply Iran With 100 Subway Cars
The Geopolitical Economy of Chinese Influence in Iran: Empire of Capital and Uneven Development
China invests in Tehran Metro
Iran Seeks Chinese Financing to Complete Tehran Metro Project
The resolution of the Economic Council regarding the completion of the eastern half of line two (2) of the Tehran subway and the south repair station using financial facilities (the subject of the agreement of the Chinese government) by the Tehran and Suburban Railway Company
Examination of the Eastern Development Plan of Line 2 of Tehran Metro
Investigating the feasibility of connecting Tehran Metro Line 2 to the new Sharq Terminal
In the next one year, no new cars will be added to the Tehran metro / Criticism of the existence of complex bureaucracy in the supply of cars
Tehran Metro Plan for Linkup With Satellite Cities Remains on Pause
Tehran Metro to Reach Pardis 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.