Economy, Domestic Economy

Italy Gears Up for €4b Iran Rail Project

Italy Gears Up for €4b Iran Rail ProjectItaly Gears Up for €4b Iran Rail Project

Tehran and Rome have signed a document, which stipulates Italy constructing two high-speed railroads in the Islamic Republic.

The agreement was signed during a meeting between Iranian Minister of Roads and Urban Development Abbas Akhoundi and Italian Minister of Infrastructure and Transport Graziano Delrio in the European country’s capital Rome on Thursday.

Italy’s state railroads company is scheduled to sign a contract to build a 100-km stretch of high-speed rail between Qom and Arak in February 2017, the UAE-based news portal Emirates Business reported, citing Reuters.

According to Ferrovie dello Stato's CEO Renato Mazzoncini, this contract is worth about €1 billion ($1.1 billion)

The second part of the agreement worth €3 billion pertains to the construction of a 260-kilometer high-speed rail between Tehran and Hamedan, which is expected to start in May 2017.

Discussions for the two projects were initiated during the April visit of Italian Prime Minister Matteo Renzi to Tehran at the head of a business delegation.

Akhoundi says Delrio is planning to make a visit to Iran in December to follow up on the projects.