China has won a mammoth metro Line 4 project in Tehran Subway, Iran on May 15, 2004, with strong backing from Chinese financial institutions.
According to the deal clinched on Saturday in Teheran, China will build the 19.04-kilometre metro line and 22 stations in the city with Teheran Urban & Suburban Co.
The deal, worth US$836 million, is China"s largest overseas engineer, purchase and construction contract.
China beat a slew of strong foreign bidders for the project, such as Germany"s Siemens, Daelim Industrial Co Ltd - a consortium jointly controlled by South Korea"s Daewoo, LG and Hyundai - and the Industrial Development and Renovation Organization of Iran.
The project include 160 cars would be made in Changchun Factory.
From 1996 to 1999, the Chinese conglomerate built its first metro link in which was also the first for the Islamic nation. CNR of China and the Teheran firm have formed a joint venture (JV) to manufacture rolling stock for the metro project.
The US$12-million JV, in which China has a 49 per cent stake, will make rolling stock, engines and spare parts in China.
China will export US$527 million worth of machinery and electronic equipment to Iran for the project.
The Export & Import Bank of China will provide loans for the undertaking. China Export Credit Insurance Corp will handle insurance.
