About 111 million euro has been allocated from the Oil Stabilization Fund for the Isfahan-Shiraz railway project, the executive director of Road and Transportation Ministry’s railroad infrastructure projects said.
Hossein Tehrani told Fars New Agency that the government has earmarked 1,000 billion rials for the project, adding the decision was made during the visit by President Mahmoud Ahmadinejad to Shiraz.
The official noted that only 25 percent of the required fund for the project was made available until March 2007.
“A presidential order was issued to expedite the construction of the railway line. Islamic Republic of Iran Railways, which allocated additional funds for the related projects, owed 3,500 billion rials to contractors until March 2008,“ he noted.
Tehrani stated that Isfahan-Shiraz Railways project was placed on international tender on an Engineering, Procurement, Construction & Finance (EPCF) basis. The tender was won by Railway Lines and Buildings (Khat-o-Abnieh Rahahan) Company.