China Eximbank provides $140 million buyer’s credit loan for Tehran Metro Line 1 Northern Extension Project (Linked to Record ID#41233)

Project narrative

In November 2002, Tehran Urban and Suburban Railway Company (TUSRC) and CITIC Group Corporation Ltd. signed a $275 million commercial (EPC) contract for the Tehran Metro Line 1 Northern Extension Project. China Eximbank subsequently signed two loan agreements with TUSRC for the Tehran Metro Line 1 Northern Extension Project: a $93.5 million concessional loan and a $140 million buyer’s credit loan. The borrower was expected to use the loan proceeds to finance 85% of the value of the commercial contract that it signed with CITIC Group Corporation Ltd. in November 2002. The purpose of the project was to construct the northern extension of Tehran Metro Line 1, which consisted of 8.2 km of railway track between the Haghani metro station and the Tajrish metro station. The project also supported the construction of 7 metro stations. CITIC Group Corporation Ltd. was the contractor responsible for project implementation. The project was completed and officially inaugurated on May 18, 2009.