Chinese Government provides $81.43 million loan for Tehran Metro Line 2 Eastern Extension Project

Project narrative

In May 2013, an unspecified Chinese Government institution and Tehran Urban and Suburban Railway Company (TUSRC) — an Iranian state-owned company — signed a $81,430,000 loan agreement with Tehran Metro Line 2 Eastern Extension and Southern Repair Project. The loan was insured (mostly likely by Sinosure) and it carried a 8-year maturity and no grace period. Its interest rate is unknown. However, it is known that the borrower expected to make payments for principal, interest, fees, and insurance worth $128,372,000 — in nominal terms — over the lifetime of the loan. It is also known that the borrower was expected to use the loan proceeds to finance approximately 85% of the cost of a $95,800,000 commercial contract between TUSRC and an unspecified Chinese company. Tehran Metro Line 2 (德黑兰地铁2号线), which opened between the Sadeqieh metro station and the Imam Khomeini metro station in February 2000, is 20.4 kilometers long, with 19 kilometers as a subway and 1.4 kilometers elevated. The Tehran Metro Line 2 Eastern Extension Project is expected to involve a 24.7-km extension of Line 2 from Farhangsara metro station (ایستگاه مترو فرهنگسرا) to the east. Upon completion, it is envisaged that the line extension will have three stations, namely Tehran East Terminal, Tehran-Pardis road toll and Pardis Technology Park in the far east of the capital. Studies for the Tehran-Pardis metro construction started in July 2019. Then, in March 2020, Khatam-al Anbiya Construction Headquarters — an Iranian engineering arm of the Islamic Revolution Guards Corps — signed an agreement worth 40 trillion rials ($135.5 million) with New Towns Development Company to implement the project.