NDF proposes 25b credit line for transport infrastructure

NDF proposes $2.5b credit line for transport infrastructure

TEHRAN - Iran's National Development Fund (NDF) has proposed allocating a $2.5 billion credit line to the Ministry of Transport and Urban Development to accelerate major transport infrastructure projects and enhance the country's logistics capabilities.

In a joint meeting between Transport and Urban Development Minister Farzaneh Sadegh and NDF Chairman Mehdi Ghazanfari, the proposal was tabled to finance key transportation initiatives, IRNA reported on Tuesday.

Ghazanfari underscored the vital role of the transport sector in Iran’s economic growth and stressed the need for innovative financial solutions to advance national infrastructure projects. "The simplistic investment models used in the past have fallen short. We must now adopt more complex and efficient financial strategies to achieve tangible results," he said.

Highlighting the importance of timely loan repayments, Ghazanfari noted previous challenges, such as delays in funds being reimbursed for projects like the Mashhad metro. "This experience demonstrates the necessity of financial models that ensure both economic viability and structured repayment of resources," he added.

However, Ghazanfari pointed to the shipping and tanker sectors as examples of successful repayment, describing them as potential models for other industries. "The NDF is ready to allocate $2.5 billion to transport infrastructure projects, provided repayment terms are carefully structured and guaranteed," he said.

During the meeting, officials emphasized the importance of prioritizing projects in the rail, road, and maritime sectors. "We expect the Ministry of Roads and Urban Development to present its priority projects for review and potential funding," Ghazanfari said.

He added that the proposed credit line could enable large-scale projects that reduce logistics costs, facilitate goods and passenger transport, and improve economic indicators.

Sustainable development and efficient resource allocation were also key topics discussed. Officials highlighted the positive repayment record of certain past projects, indicating the feasibility of financing further initiatives.

The meeting comes amid reports that $900 million of previously allocated transport sector funds have already been repaid, reflecting the sector’s repayment capacity and potential for further investment.

It was agreed that the Transport Ministry would submit detailed proposals to the NDF for review. The move aims to streamline project financing and execution, contributing to the improvement of Iran’s transport infrastructure and economic development.

EF/MA

source: tehrantimes.com