Nourollah Beiranvand, IRIR’s deputy for planning and investment, also encouraged foreign investors to participate in the country’s projects to develop its rail network, stating that the Iranian government offers sovereign guarantees on foreign finance.
“Diversification of financial resources, the use of modern financial instruments and attraction of foreign investments are among the main policies of the Islamic Republic of Iran Railways to finance its projects,” he told Trend.
Beiranvand added that the railroad organization has taken measures to launch a specialized leasing company for offering services to private firms involved in providing the rail organization with the required fleet, according to Financial Tribune.
“The allocation of loans by 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 railroads on the issue of launching specialized leasing companies, Beiranvand said IRIR has already privatized its fleet of freight and passenger carriages.
“About 30% of the country’s locomotives have also been handed over to the private sector,” he said.
Noting that IRIR looks to maximize the role of private sector in providing and utilizing railroad fleet, he elaborated on the organization’s plans to provide investors with economic incentives.
The official highlighted that IRIR offers the guaranteed purchase of services to private firms that have acquired locomotives.
In the meantime, the railroad organization facilitates the allocation of bank loans to private firms involved in the manufacture of freight and passenger carriages.
Beiranvand further said another method to support investors is by covering the risk of currency fluctuations up to 10%.
He believes that drawing investment through the country’s capital market is another way to support private firms involved in supplying wagons.
Beiranvand said that under the initiative, his organization will take measures for covering the risks of private firms and attracting investment from the capital market.
To develop the country’s rail network, IRIR has introduced €28 billion worth of investment projects, which are expected to be completed in the next five years.
Over the past year, the organization has finalized €3 billion worth of investment agreements and it is currently in talks to cement more deals with foreign investors.