China Eximbank provides $29 million buyer’s credit for Karaj-Mehrshahr Subway Project (Linked to Project ID#41121 and ID#41123)

On June 23, 2000, China Eximbank and the Central Bank of Iran signed a $500 million general loan agreement. Then, on January 22, 2003, China Eximbank, Tejarat Bank, and Tehran Urban and Suburban Railway Company (TUSRC) signed a $29 million subsidiary buyer’s credit loan agreement for the Karaj-Mehrshahr Subway Project. The loan carried the following borrowing terms: a 8.5 year maturity, an interest rate of LIBOR plus a 1.5% margin, 0.25% management fee, and a 0.25% commitment fee. The borrower agreed to repay the lender in 17 semi-annual installments. The purpose of the project was to complete a subway line between Karaj Metro Station and Golshahr Metro Station. Karaj Metro Station is a station in Tehran Metro Line 5. It is located in southeastern Karaj near Tehran-Qazvin Freeway. It is between Atmosfer Metro Station and Mahdasht Metro Station. The station is 1.8 km (1.1 mi) north of Karaj railway Station, which serves Tehran Commuter Railway. Golshahr Metro Station is the former western end of Tehran Metro Line 5. It is located in Mehrshahr in southwest of Karaj. China North Industries Group Corporation Limited (NORINCO Group) was the contractor responsible for project implementation. The Karaj-Mehrshahr Subway Project was completed on March 15, 2005

Additional details

1. AidData has estimated the all-in interest rate by adding 1.5% to average 6-month LIBOR in January 2003 1.373%). 2. The Persian project title is پروژه کرج - مهرشهر or خرید تجهیزات پروژه کرج - مهرشهر.

Number of official sources

1

Number of total sources

11