Chinese investor to finance road construction in SW Iran

TEHRAN, Dec. 18 (MNA) – A Chinese firm was awarded a contract to hold the 70 percent of the shares in the project to build a new highway between Iranian SW city of Ahvaz and central city of Isfahan.

A highway linking Ahvaz, Izeh, Lordegan, and Isfahan in southwestern Iran will be built with a Chinese investor providing 70 percent of the cost.

At a ceremony on Monday, the Chinese firm and the Provincial Government of Khuzestan province signed the pact in Ahvaz.

“Promoting a memorandum of understanding to a contract is a time consuming process and the legal and bureaucratic procedures of the agreement need to be examined to pave the way for the Chinese firm to join the project,” said Gholamreza Shariati, the Deputy Governor for Public Relations in the Provincial Government of Khuzestan province, during the ceremony of signing the contract.

“Expert and precise justifications have been made for constructing the project, and it was important that the plan get the approval of the government’s cabinet of ministers,” he added.

According to the official, Iranian government will provide 30% and the rest of the finance (70%) will be up to the Chinese firm.

The same source recounted that late in April a sum of 55,000 Rials of credit has been allocated for constructing this project.

The Ahvaz-Izeh-Lordegan highway with a length of 272 kilometers will shorten the former 305 kilometer route of Ahvaz-Lordegan with more tunnels and bridges.

YNG/IRN 82767716

News Code 130377

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