Ministry of Roads & Urban Development

Deputyship of Transportation Planning & Economics
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Incentives Packages for Investors

 

incentives and support packages for investors:

1-Fixing access charge for the new freight cars

Railway access charge for the 4-axled and 6-axled cars up to four 4 and 6 million net ton-km hauled during a period of max. 42 months (whichever occurs sooner) since
the beginning of the operation will not charged.

2- Fuel consumption saving revenue  share

Total capital spent the new investment  projects of the private sector in procuring freight/passenger fleets , locomotives  and infrastructure will be refund  up to the main investment ceiling in the favor of the contractual investors The total saving amount of income from transportation of each ton-km of freight is 35 cc of gas oil and is 20 cc of gas oil for transportation of each passenger-km.

3- Support packages for procuring coaches

to support investments related to procurement of class 1 compartment coaches, RAI shall guarantee the revenue of 1200 km-day running of 90% of the purchased cars for a period of 10 years after their entrance and operation on the condition of their availability and paying 50% of the fuel saving income according to Iranian law in  return for each personkm till 2023, for the investors max. equal to the amount of investment.

4- Possibility of partnership of government up to 30% of total investment cost

budget of the technical and credit assistance divided in needed years, through opening of LC to the investors of the private sector as in the form of establishing a  company and concluding PPP contracts up to 30% of the foreseen cost for construction.

5- Paying the access charge of the existing lines in double-tracking projects

investors thru execution and development of the new line construction process, based on an approved and agreed financial model should received access charge for  existing and new lines.  It goes without saying that the amount and period of the access charge payment to the investor shall be calculated and guaranteed subject to the amount of investment, payback period, and internal rate of return (IRR).

6- Paying the facilities out of the managed funds

There is a possibility to pay equal to 75% of total investment amount for procuring rolling stock, machinery, equipment for the railway workshops to the private sector investors through conclusion of agency agreements and managed funds deposited in the corresponding banks (by submission of an accepted technical, financial
and economic feasibility study).. The preferential interest rate shall be fixed from 8% to 16% according to the type of investment in the passenger and freight sections.

7- Paying the facilities out of the National Development Fund resources

The corresponding banks can pay equal to 75% of the total investments for procuring rolling stock, machinery, equipment for the railway workshops to the private sector
investors (by submission of an accepted technical, financial and economic feasibility study) as the foreign exchange facilities. Based on its legal powers, RAI can guarantee maximum exchange rate fluctuations.