75411
Financial Instruments for Railroad Investments Outlined
Financial Instruments for Railroad Investments Outlined

Financial Instruments for Railroad Investments Outlined

Financial Instruments for Railroad Investments Outlined

Financing railroad projects through public-private partnership, foreign direct investment and leasing are among methods to set up ventures with foreign investors, a senior official with the Islamic Republic of Iran Railways said.
Nourollah Beiranvand, IRIR’s deputy for planning and investment, also encouraged foreign investors to participate in the country’s projects to develop its rail network, stating that the Iranian government offers sovereign guarantees on foreign finance.
“Diversification of financial resources, the use of modern financial instruments and attraction of foreign investments are among the main policies of the Islamic Republic of Iran Railways to finance its projects,” he told Trend.
Beiranvand added that the railroad organization has taken measures to launch a specialized leasing company for offering services to private firms involved in providing the rail organization with the required fleet.
“The allocation of loans by the leasing company will take place through the resources of the National Development Fund of Iran,” he said.
Calling on foreign investors to cooperate with Iranian railroads on the issue of launching specialized leasing companies, Beiranvand said IRIR has already privatized its fleet of freight and passenger carriages.
“About 30% of the country’s locomotives have also been handed over to the private sector,” he said.
Noting that IRIR looks to maximize the role of private sector in providing and utilizing railroad fleet, he elaborated on the organization’s plans to provide investors with economic incentives.
The official highlighted that IRIR offers the guaranteed purchase of services to private firms that have acquired locomotives.
In the meantime, the railroad organization facilitates the allocation of bank loans to private firms involved in the manufacture of freight and passenger carriages.
Beiranvand further said another method to support investors is by covering the risk of currency fluctuations up to 10%.
He believes that drawing investment through the country’s capital market is another way to support private firms involved in supplying wagons.
Beiranvand said that under the initiative, his organization will take measures for covering the risks of private firms and attracting investment from the capital market.
To develop the country’s rail network, IRIR has introduced €28 billion worth of investment projects, which are expected to be completed in the next five years.
Over the past year, the organization has finalized €3 billion worth of investment agreements and it is currently in talks to cement more deals with foreign investors.

Short URL : https://goo.gl/nP5CXV
  1. https://goo.gl/6ZyPhW
  • https://goo.gl/1tPWi4
  • https://goo.gl/wHKRHQ
  • https://goo.gl/6hz8rD
  • https://goo.gl/HvhGeq

You can also read ...

CBI Moves to Sideline USD
As part of the latest measure to ditch the US dollar from the...
Effects of Sanctions on Food Consumption of the Poor
It is now clear that the purpose of US sanctions against Iran...
Sanctions, Banking Troubles Facing Iranians in Hong Kong
Banking for companies that do business with Iran–as well as...
Surcharge on Forex Rate Difference “Illegal”
The retrospective application of Clause Five of the government...
New Online System to Monitor Warehouses Countrywide
All warehouses in Iran are required to register in the so-...
Bank Loans Hit €18 Billion in 4 Months
Banks and credit institutions allocated a total of 1.67...
Sesame Oil, Products Imported From  6 Countries
More than 1.38 million tons of sesame oil and products worth $...
Gov’t to Build  2 New Towns
The Iranian government will commence the process of building...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus