Hyundai Rotem and Iran Railways have signed a USD 260 million agreement for the supply of 150 DMU cars. The contract will be signed in July. According to the agreement, Korea’s Ministry and Finance will cover 85% of the value of the contract.
The vehicles will be deployed on the Teheran’s 960 km suburban rail network.
In 2004, Hyundai Rotem signed an agreement for the delivery of 150 cars to Iran, but it had to be put on hold due to sanctions imposed. Before the suspension, the company had supplied 68 cars of the total without receiving pay, South Korea’s Yonhap News Agency reports.
As the sanctions were lifted earlier this year, the company said that it will hold negotiations to settle the unpaid bill worth around USD 76.1 million and supply the remainder of the promised train cars to Iran.
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