Incentives for Upgrading Urban Public Transportation Fleets

From offering cheap loans for replacing old taxis to launching new subway lines and introducing eco-friendly modes of transportation, municipalities throughout Iran are implementing measures for curbing air pollution and easing daily commute for citizens.
Projects implemented in Tehran and Mashhad, for instance, have been at the forefront of upgrading urban transportation.
As per a deal signed by the mayor of Mashhad in Khorasan Razavi Province and Bank Melli Iran, 100 billion rials ($847,000) will be loaned to overhaul the city's aging taxi fleet, the municipality reported on its website.
The agreement was signed by Mohammad Reza Kalaei, the mayor of Mashhad, and Hassan Mounesan, an authority with the bank, which entails offering cheap loans to taxi owners, encouraging them to phase out their clunkers and buy new cars.
Initially, each of the loans worth 500 million rials ($4,200) is to be paid to 2,000 applicants with an 18% interest rate. Later, the municipality pitched in and the interest rate was reduced to 4%. The loans are to be repaid in five-year installments.
Reportedly, the dilapidated taxis will be replaced with Iran Khodro’s Samand and Peugeot 405. The two models are respectively sold at a factory price of 450 and 650 million rials ($3,800 and $5,500).