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Iran railways calls on investors to co-op in forming leasing firms

01 November 2017 [10:36] - TODAY.AZ

By  Trend


A senior official with the Railways of the Islamic Republic of Iran (RAI) has said financing railway projects through public-private partnership, foreign direct investment and leasing are among methods to cooperate with foreign investors.

Nourollah Beiranvand, the deputy for planning and investment at RAI encouraged foreign investors to participate in the country’s projects to develop its railway system, saying that Iranian government offers sovereign guarantee on foreign finances.

"Diversification of financial resources, using modern financial instruments, and luring foreign investment are among the main policies of the Railways of the Islamic Republic of Iran (RAI) to finance its projects," Nourollah Beiranvand told Trend.

Beiranvand added that the railways organization has taken measures in order to launch a specialized leasing company to offer services to private firms involved in providing the railways organization with the required fleet.

"The allocation of loans in the leasing company will take place through the resources of the national development fund of Iran," he said.

Calling on foreign investors to cooperate with Iranian railways in the issue of launching specialized leasing companies, Nourollah Beiranvand said that the RAI has already privatized its fleet of freight and passenger carriages.

He added that about 30 percent of the locomotives of the country have also been handed over to the private sector.

Saying that the RAI looks to maximize the role of the private sector in the issue of providing and utilizing railway fleet, he elaborated on the organization’s plans to provide investors with economic incentives.

The official highlighted that the RAI offers guaranteed purchase of services to those privet firms that have acquired locomotives. In the meantime, the railways organization facilitates the allocation process of banking loans to those private firms involved in the manufacturing of freight and passenger carriages.

Another method to support investors is to cover the risks of currency fluctuation up to 10 percent, Berianvand mentioned.

Beiranvand believes that luring investment through the country’s capital market is another way to extend support to private firms involved in supplying railways fleet.

The official said that under the initiative his organization will take measures aimed at covering the risks of the private firms, drawing investment from the capital market.

The RAI in order to develop the country’s railways system has introduced worth of 28 billion euro of investment projects expected to be completed within the next five years.

Over the past year, the organization has finalized worth of three billion euro of investment agreements and it is currently in talks to cement more deals with foreign investors.

URL: http://www.today.az/news/regions/166356.html

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