China Eximbank provides buyer’s credit loan for Tehran Metro Line 4 Construction Project (Linked to Project ID#41122 and ID#41123)

Preliminary agreements on the construction of Tehran Metro Line 4 began during Iranian President Mohammad Khatami's state visit to China on June 23, 2000. Then, on June 15, 2004, China North Industries Corporation (NORINCO) — a Chinese state owned enterprise (SOE) — signed a $836,000,000 engineering, procurement, and construction (EPC) contract with Tehran Urban and Suburban Railway Company (TUSRC) for the Tehran Metro Line 4 Construction Project. China Eximbank reportedly issued a buyer’s credit loan to support the financing of the EPC contract. This loan was also reportedly insured by China Export & Credit Insurance Corporation (Sinosure). The purpose of the project was to construct a 22 km metro line (‘Line 4’) — running from east to west in the city of Tehran — that links 19 metro stations. Line 4 was constructed in four sections (phases). Section 1 runs from Ferdowsi Square to Darvazeh Shemiran. Section 2 runs from Darvazeh Shemiran to Shohada Square. Section 3 runs from Ferdowsi Square to Engelab Square. Section 4 runs from Meydan-e Azadi to Ekbatan. NORINCO entrusted the project's implementation and financing to NORINCO International Cooperation LTD., its wholly owned subsidiary. Construction on Section 1 began in June 2007 and it opened on April 19, 2008. Section 2 opened on March 16, 2009. Section 3 opened on May 31, 2009. Section 4 opened on July 23, 2012.

Additional details

1. The Chinese project title is 德黑兰地铁4号线项目 or 北方工业公司承包德黑兰地铁项目 or 德黑兰地铁4号线 or 德黑兰地铁4号线项目. . 2. The face value of the buyer’s credit loan from China Eximbank is unknown. For the time being, AidData assumes that the face value of the loan is equivalent to 85% of the value of the $836 million commercial (EPC) contract between TUSRC and NORINCO ($710.6 million).

Number of official sources

9

Number of total sources

30