Iran ceases company transfer deal

10 September 2013 10:48 (UTC+04:00)

Iranian Energy Minister Hamid Chitchian said that the current administration annulled a deal on the Gorgan-Bojnourd railway project, the Mehr News Agency reported.

"The project's cost was estimated at 4 trillion rials. Based on the signed deal a Chinese firm was supposed to finance 85 per cent of the amount, while the roads ministry was supposed to pay the other 15 per cent," he said.

"The previous administration decided to transfer the shares of one the ministry's subsidiaries to pay the mentioned 15 per cent. The value of the shares was around 6 trillion rials and the transfer would totally cost 12.6 trillion rials," Chitchian said, adding that the current administration annulled the decision and plans to pay the money in another way.

"The value of the shares which were supposed to be transferred were 21 times more than the ministry's share and 3 times more than the project's total cost," he said.