TEHRAN, Jan. 23 (Mehr News Agency) -- A Chinese official said that an agreement has been signed between Iran and China to allow Chinese banks' investment in Iran for the construction of the first section of Iran's Tehran-Shomal Freeway.
Given the finalization of the contract between the two countries' banks that resulted in the opening of the credit sequence for the project in both the banks, there does not seem that development of the project would face any problem, noted chairman of a foreign investment company from Shanghai, China, financing the project. He added that, based on the terms of the contract, construction of the first section of the road is expected to be completed in a three-year period.
He pointed to the amount of investment made by the Chinese side in the project and said, the figure is estimated to be about 220 billion dollars. He also added that the investment would be repaid within a period of 12 years and the interest rate is agreed on to be at five percent, the Persian service of Iranian Students News Agency (ISNA) reported here on Monday.
The Chinese side also commented on the Chinese company's further negotiations with Iranian officials from the Ministry of Roads and Transportation over the building of the two median sections of the road. He continued that, necessary studies including geological surveys have been carried out on the two parts and if an agreement were reached, the company would be able to build the sections within four years.
Construction of the huge national project of Tehran-Shomal Freeway has been running into rough weather and if completed, would significantly shorten the current distance from the capital Tehran to the Caspian Sea littoral cities.
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