Domestic Economy

Tough Times for Tehran Metro

The capital’s subway network requires more loans for further development, while it owes $1.33 billion to the local banking system
Tough Times for Tehran Metro
Tough Times for Tehran Metro

Tehran Metro Company, the executive entity for the capital’s subway network, is in the red, owing the local banking system 370 trillion rials ($1.33 billion), while still needing funds to overhaul wagons and complete unfinished lines. 
According to Mojtana Shafiei, the deputy head of Transportation and Traffic Department at Tehran Municipality, Tehran Metro’s bad debts, which have built up from years of financial crisis, make it difficult for receiving more loans, IRNA reported.
Speaking during the most recent meeting of Tehran City Council, Shafiei said the subway network is one of the most prominent means of providing urban mobility services to the public. 
“The company’s debt accumulation to the banks can seriously disrupt its operations,” he added.
The official elaborated on fiscal deficiencies in the way of subway development and said the completion of under-construction subway lines requires an estimated 350 trillion rials ($1.26 billion).
Stretching over 253 kilometers across the capital, Tehran Metro constitutes seven lines, with lines 6 and 7 still under construction.
Line 6 will be the longest route in the subway network, stretching over 38 km with 27 stations upon completion. It connects Shahr-e Rey in southeast Tehran to the Sulaqan rural district in the northwest.


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