1% of Oil Revenues for Rail Expansion

The parliament has approved a bill to allocate 1% of oil revenues to rail projects in the sixth five-year economic development plan (2016-21). Tabriz lawmaker, Mohammad Hossein Farhangi, was quoted as saying by IRNA on Wednesday that it is the first time Majlis has given a fixed share from oil revenues to the rail sector, describing the move as a “bold decision”. The sixth FYDP is being decided on by the parliament these days after the government submitted its draft version earlier. Based on the draft, railroads across the country should be electrified and double-tracked, and 1,500 km of new lines be constructed. Despite a plunge in oil revenues, which account for the lion’s share of the government’s income, allocation of a fixed tranche of petrodollars to the underdeveloped rail industry shows a firm determination on the part of authorities to expand the key sector. “The move will pave the way for major investments in the rail sector,” Farhangi said.