On November 23, 2015 during the visit of President Vladimir Putin to Tehran, RZD International and the Islamic Republic of Iran Railways signed a contract for Garmsar - Inche-Bourun Railway Line Electrification including design, supply of equipment, machinery and materials, construction of railway infrastructure, etc. The project will be financed under the agreement on export credit between the Government of the Russian Federation and the Government of the Islamic Republic of Iran.
The project includes electrification of Garmsar - Inche-Bourun railway line with a total length of 495 km, 203 km in mountainous area as well as electrification of 32 stations and 95 tunnels, building 7 traction sub-stations and 11 sectioning points, 6 service stations of the overhead catenary system and administrative building.
The implementation of the project will increase the capacity of the railway line and the running speed of the trains on certain sections. According to preliminary estimates, the project will be implemented within 3 years.
The contract was signed by Sergey Pavlov, Director General of RZD International, and by Dr. Mohsen Pour Seyed Aghaei, Vice Minister of Roads and Urban Development, Chairman of the Board, President of RAI. The total price of the contract is about 1,2 billion U.S. dollars.
On 13.12.2016 the Additional agreement to the Contract was signed in Tehran by "RZD International" LLC and JSC "Islamic Republic of Iran Railways" on the sidelines of the 13-th session of the Russian-Iranian intergovernmental commission on trade and economic cooperation. The document establishes the General and Special conditions of the Contract, as well as the cost of materials, equipment, design and construction works.