With costs of infrastructure development soaring, Tehran City Council has ratified a motion allowing Tehran Municipality to raise 40 trillion rials ($133.30 million) through the issuance of participatory bonds for streamlining public transportation in the current fiscal year (ending March 2021).
The previous cap was at 30 trillion rials ($100 million) that has been raised, following Tehran Mayor Pirouz Hanachi’s request, ISNA reported.
Hard pressed by sanctions, the Iranian economy has contracted while the cost of infrastructure projects continues to increase.
Mohammad Alikhani, the head of Tehran City Council’s Transportation Commission, said the decision has been ratified by Iranian Parliament’s joint commission for budget and transportation.
“The raise will be incorporated as an amendment to the approved budget bill of 2020-21,” he said.
The TCC official further said the new decision will help boost Tehran’s public transportation system, in view of the municipality’s financial hardships.
“Tehran Municipality should make the best use of this opportunity and accelerate plans for developing the city’s transport services,” he said.
He added that urban managers plan to invest the money raised through bond issuance for overhauling the capital’s dilapidated bus fleet and purchasing 1,000 new buses.
Alikhani stressed that the development of unfinished subway lines will continue.
The capital's subway stretches over 220 kilometers and comprises seven lines (1 to 7) with nearly 120 stations. Lines 3, 6 and 7 are yet to become fully operational.
“Tehran Metro and TM had planned to launch 12 subway stations by the end of last [fiscal] year [March 2020]. The plan was halted due to financial shortfalls, but the injection of money will help implement its plans,” he said.
Mahmoud Tarfa, the CEO of Tehran Bus Company, said that of the total 6,000 buses operating in the city’s transport fleet, over 3,500 of which are over 12 years old and dilapidated.
These old buses have numerous technical problems and cause inconvenience to passengers, apart from worsening air pollution suffocating Tehran’s residents.
Tehran Taxi Organization had recently announced that around 80,000 taxis are operating in the city, over 50% of which are above 10 years of age and considered dilapidated.
Financial Deficit
Ali Emam, the CEO of Tehran Metro Company, told reporters that the unfinished subway network in the capital city of Tehran needs $12.5 billion to construct 250 kilometers of railroads, purchase train cars and standardize equipment.
He added that the TM’s plan for the current year includes the launch of 12 metro stations that requires 45 trillion rials ($150 million), apart from the price of train wagons.
Emam noted that due to the negative effects of US sanctions, Iran’s rial is losing value against hard currencies, making it a tough task to expand and renew the ailing public transportation in Tehran.
Since the US reimposed sanctions against Iran in 2018, the rial has lost 70% of its value against the greenback over the past year. On Monday, the US dollar traded at 300,000 rials in Tehran while it hardly fetched 42,000 rials in March 2018.
The Tehran Metro chief said a train wagon cost 50 billion rials a couple of years ago, but now the price has reached 200 billion rials, which Tehran Municipality cannot afford.
According to the official, the operating segment of subway network still lacks 3,000 train cars to facilitate 10 million daily travels.
There are around 1,300 train wagons currently operating in Tehran’s subway, 30% of which need to be upgraded.
Subway Shortcomings
Mohsen Hashemi, the head of TCC, has also expressed disquiet over Tehran subway’s shortcomings.
“While the subway lines have been extended around the city by 80 kilometers in the past several years, not enough trains have been added to the metro network,” he said.
Hashemi noted that for each kilometer of the subway, there were 1.1 train wagons.
“Today, the figure has fallen by 30%, which means that for each kilometer of the operating subway line, there are 0.8 train cars,” he added.
TM expects the number of commuters to surge by 25% after subway lines 6 and 7 are up and running, and more buses join the public transportation fleet.
But this is definitely not sufficient for Tehran where, according to pre-coronavirus statistics, over 10 million people commute daily, many from the surrounding cities and towns.
The challenging task of developing the subway system in Iranian metropolises has raised concerns among urbanists. They blame mismanagement and lack of budget for the slow progress.
Urban officials believe that the capital city’s subway system faces serious shortcomings that will not be obviated even in two decades, if policymaking processes and budget management are not overhauled.
However, Tehran is not the only city facing public transportation deficiencies.
Reports show Isfahan, Mashhad and Alborz, other Iranian metropolises, are also grappling with the same problems.
