Skip to content

Overview

Chinese Government pledges $2 billion loan for Parts 2 and 3 of Tehran North Freeway Construction Project (Linked to Record ID#67090)

Commitments (Constant USD, 2023)$2,092,396,763
Commitment Year2015Country of ActivityIranDirect Recipient Country of IncorporationIranSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2015

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

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Tehran-North Freeway Company

Implementing agencies

Private Sector

  • Federal Aisa Shanghai Import & Export Co., Ltd.

State-owned companies

  • China Railway Tunnel Group
  • China Shanghai (Group) Corporation for Foreign Economic and Technological Cooperation (China SFECO Group)

Loan description

Chinese Government pledges $2 billion loan for Parts 2 and 3 of Tehran North Freeway Construction Project (Linked to Record ID#67090)

Interest typeUnknown

Narrative

Full Description

Project narrative

On September 22, 2015, China Communications Construction Company, Ltd. (CCCC) signed a memorandum of understanding (MoU) worth $2 billion with Tehran-North Freeway Company for Parts 2 and 3 of the Tehran North Freeway Construction Project. The project was initially designed as a 121 km long freeway in 4 parts (sections). Part 2 was a 23 km section (including a 6.5-km tunnel and a 16.5-km highway) and its total cost was approximately $500 million. Part 3 was a 45 km section and its total cost was approximately $1.5 billion. The project was implemented by a consortium of China Railway Tunnel Group, China Shanghai (Group) Corporation for Foreign Economic & Technological Cooperation, and Federal Asia Shanghai Import & Export Co., Ltd. By 2020, Parts 2 and 3 had yet to be completed. According to the head of Iran’s Islamic Revolution Mostazafan Foundation, Part 2 was scheduled to reach a 50% completion rate by 2021-22.

Staff comments

1. The Chinese project title is 德黑兰北部高速公路 or 德黑兰-肖玛尔高速路二、三阶段 or 伊朗德黑兰北部高速公路项目。 2. On July 7, 2005, ICBC signed a $180 million export buyer's credit agreement with Tejarat Bank of Iran to construct Part 1 (Section 1) of the Tehran-North Highway (Freeway) Construction Project (as captured via Record ID#67090). The purpose of the project was to construct a 32 km highway segment that runs from an interchange with Azadegan Expressway and Hemmat Expressway in northwestern Tehran city (Municipality District 21) to Doab, Shahrestanak, Alborz Province. Construction of Part 1 began in February 2006. The project had achieved an 83% completion rate as of May 3, 2017 and was originally scheduled for completion in August 2017. However, it encountered multiple delays, and its expected completion date was eventually pushed back to February 2020. Section 1 ultimately opened for test service on February 12, 2020 and it officially opened on February 25, 2020. 3. In March 2014, Part 4 (Section 4) of the Tehran-North Highway (Freeway) Construction Project, which is 20 km long and connects Marzanabad to Chalous, was officially inaugurated. It was later closed to the public due to technical problems. 4. On January 26, 2018, Iran’s Islamic Revolution Mostazafan Foundation and China Railway Academy Company (CRAC), a subsidiary of China Railway Group Limited, signed a MoU regarding the financing and construction management of Section 3 of Tehran-North Freeway.