Local powerhouses take metro lines

21 July 2006
Mostazafan & Janbazan Foundation (MJF), the country's largest bonyad, has been awarded the contract to build line 6 on the Tehran metro and Khatam-ol-Anbia (Ghorb), the engineering arm of the Islamic Revolutionary Guards Corps, line 7. The projects are each worth about $1,200 million and were awarded through direct negotiation. The client is Tehran Urban & Suburban Railway Company (see Special Report, pages 39-41).

Line 6 will run from Sadeghi Square to Azadegan Highway, while line 7, will run from Velenjak, through Shahrak-e Qods to Afsareh.

Both contractors have been asked to bring finance, something that could prove difficult given the reluctance of Western and Japanese banks to take on Iranian project debt. The projects will also demand a high level of technical procurement, much of it from abroad, including rolling stock manufacturing, switching and communications systems.

Ghorb has also been awarded the estimated $350 million civils package on line 4. The package was originally to have been carried out by China North Industries Corporation (Norinco), but because of rising procurement prices, Norinco's original bid of $680 million for the entire project is no longer feasible. As a result, the project has been split into two packages, with the Chinese company now responsible for carrying out the procurement and equipment supply only.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.