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On March, 28, 2017, RZD International and the Islamic Republic of Iran Railways signed the Contract for Electrification of the Garmsar – Inche Bouroun Railway Line. Under the agreement, the project will be financed by the state export credit granted by the Government of the Russian Federation to the Government of the Islamic Republic of Iran, which has entered into force in November 2017.

The project includes electrification of the Garmsar - Inche-Bourun railway line with the total length of 495 km, including 203 km in mountainous area, as well as electrification of 31 stations and 94 tunnels, building 7 traction sub-stations and 8 sectioning points, 6 overhead line service, repair and maintenance stations and the office building for the railway line’s electrification department. The Contract also provides for supplying of new locomotives and track machinery, modernization of signaling and communication systems as well as technical assistance during the first year of operation.

Implementation of the whole range of works under the project will significantly raise the level of traffic safety, lead to reduction of emissions into the atmosphere and increase freight capacity of Garmsar - Inche-Bourun railway line that is the eastern branch of the International North – South Transport Corridor.

The estimated cost of the Contract is €1,2 billion. The Contract is estimated to be completed in 50 months.