Overview

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

Commitments (Constant USD, 2023)$65,251,013

Commitment Year•2003Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 22, 2003

End (actual): Mar 15, 2005

Last repayment (originally scheduled): Jul 21, 2011

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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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. More detailed locational information can be found at https://www.openstreetmap.org/relation/13974268

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

Central Bank of Iran

State-owned Banks

Tejarat Bank

State-owned companies

Tehran Urban and Suburban Railroad Company

Implementing agencies

State-owned companies

China North Industries Group Corporation Limited (NORINCO Group)

Loan desecription

China Eximbank provides $29 million buyer’s credit for Karaj-Mehrshahr Subway Project

Grant element•22.0942%Interest rate (t₀)•2.86%Interest type•Variable Interest RateMaturity•8.5 years

Narrative

Full Description

Project narrative

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

Staff comments

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.