Russian Railways' export business RZD International and Islamic Republic of Iran Railways (IRIR) signed a €1.2-billion contract for the electrification of the 495 km route from Garmsar, Semnan Province on the Tehran–Mashhad main line to Incheh-Borun on the border with Turkmenistan.
This builds on an initial agreement signed in November 2015, railwaygazette.com reported on Tuesday.
The scope of the work includes 25 kV 50 Hz electrification and track, signaling and telecoms enhancement to increase capacity on the route.
It also covers the supply of maintenance vehicles and electric locomotives as well as the provision of technical assistance during the first year of electric operation.
The work is scheduled to take four years, and will start as soon as the governments have finalized a €1-billion Russian loan which is to be repaid over five years with an annual interest rate of 2.77 percent.
A memorandum of understanding also was signed between RZD International and IRIR to use the project as a basis for cooperation elsewhere.
