Economy, Domestic Economy

Road Construction Awaiting NDFI Funding

Road Construction Awaiting NDFI FundingRoad Construction Awaiting NDFI Funding

The ministry of road and urban development is negotiating with the National Development Fund of Iran (NDFI) for funding eight road construction projects worth around $5.6 billion, said a deputy road minister expressing hope that the negotiations would yield positive results.

Although the two sides have not yet signed a contract for funding the projects, Ali Nourzad anticipated that an agreement is within reach.

“Currently there are 600 kilometers of roads under construction, with the construction of another 1,900 kilometers being studied,” he said.

Noting that the budget needed to complete the ongoing projects is estimated at 37.5 trillion rials ($1 billion), he also said the construction projects have already caused 1.4 trillion rials ($40 million) in debts. Nevertheless, only close to 7 trillion rials ($200 million) has been allocated to the ministry from the annual budget, he said, which makes it impossible to complete the unfinished projects without the contribution of domestic and international investors.

The remarks over using NDFI finances for road building came after lawmakers in the parliament gave the green light for the NDFI to grant loans in foreign currency to national transportation development plans as of next Iranian year (starting March 21).

The transportation system (including four main areas of marine, rail, air, and road transportation) has great potential for investment, said the deputy minister, adding that there are also plenty of unfinished projects that have been suspended due to lack of funds.

Earlier, Safdar Hosseini, board member and chairman of the NDFI, had announced that the fund is willing to invest in developmental projects.