China’s Citic Group Corporation has signed a memorandum of understanding for lines of credit worth $10bn with Iranian banks.

The Iranian banks that signed the agreement include: Bank of Industry and Mine, Refah Bank, Parsian Bank, Bank Pasargad and Export Development Bank of Iran.

Citic will provide the loans for funding projects in areas such as energy, natural environment, transportation and the management of water resources.

In July, the Export and Import Bank of China (Exim) has signed a $1.5bn deal with Iran’s Bank of Industry and Mine to finance the electrification of the 926km high-speed railway that links the capital Tehran with Mashhad, the country’s second largest city located in northeast Iran.

According to regional projects tracker MEED Projects there are $168bn of projects in Iran at the pre-execution stage. There are $128bn of projects currently under execution.