Iran requires private sector funding for some 3,000 metro cars it requires to accommodate rising demand and reduce pollution arising mainly from the use of mostly fuel–inefficient cars and other motor vehicles.

Although private finance accounted for a sizable contribution to the development of Iran’s rail sector in the years prior to 2009, the sector has received zero funding from the private sector since with the government, primarily the municipalities, providing funding.

The planned expansion will significantly improve the share of rail or metro of the total public ridership from its current share of 20 per cent.

The Tehran Metro Lines 6 and 7, which earch carry a budget value estimated at $4bn, are currently under construction.

Two additional lines, 9 and 10, for the Tehran Metro are planned but major financial constraints could hinder the projects to move forward.

The lifting of economic sanctions imposed on Iran by the US, UK and EU are expected to bring some relief to Tehran’s extreme budgetary constraints.