(Persia Digest) – A contract has been signed between the Industrial Development & Renovation Organization of Iran (IDRO) and the Swiss Stadler Company, for the manufacture of 960 metro trains to run on the Tehran-Karaj line, aiming to create jobs and transfer technical knowledge.

The contract is worth an estimated euros 1BN and 100MM with Swiss financing. It has been signed by Ali Araghchi, IDRO CEO on the Iranian side, and Mohammad Rahmani, Senior Stadler Negotiator on the Swiss side. The project will be carried out by “Polour Sabz-e Kerman” with Stadler financing.

Swiss Ambassador to Tehran, Markus Leitner, Iranian Deputy Minister of Industry, Mine and Trade, and IDRO Chairman of the Board were present at the signing ceremony.

The said production line will employ an estimated 500 people in the deprived area of Zarand, Kerman Province, in southeast Iran, with a manufacturing capacity of 300 metro trains per year.

Stadler will provide the financing up to a ceiling of 85% of value added as a finance line approved by the Swiss SERV institute.

Repayments will take place over a period of 14 years and the financing will be arranged between a European and Iranian bank.

The contract also includes the transfer of technical knowledge under EU standards and terms and conditions. Training will be given as an initial step by Stadler staff. Manufacture and after sales services of various rail transports in Iran and the Middle East will be carried out jointly, and marketing and sales in Iran and the Middle East will be conducted by Stadler.

The trains will be manufactured at the Polour Sabz-e Kerman plant. The final share of domestic production will be 55%. Maximum parts production has been stipulated for the Iranian producer.

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