Line 4 is under negotiation with China North Industries Corporation (Norinco)
for $680 million, but the company is understood to be seeking more money to reflect increased equipment prices. On line 3, the local Rail Transportation Industry Company (Rtico)
has still not brought a foreign partner to the table as required. The client, Tehran Urban & Suburban Railway Company (TUSRC)
, says it hopes to resolve outstanding issues with its preferred partners on the project and avoid a retender.
The two companies were chosen as the best placed bidders for the projects after a long-drawn out tender process that ended in 2004. However, negotiations have continued since then, with Rtico, a subsidiary of Industrial Development & Renovation Organisation (IDRO), seeking a partnership with Germany’s Siemens
or Canada’s Bombardier
. Both companies were unsuccessful bidders in the original tender. TUSRC says it will request local companies to lead the bidding groups on lines 6 and 7 and bring foreign equipment suppliers and finance with them.