In the Name of God
Opportunities for Investment and Participation in Development Plans of Railways of the Islamic Republic of Iran
The Ministry of Road & Urban Development The Railways of the Islamic Republic of Iran Investment and Transportation Economy Bureau Identification
Title:Opportunities for Investment and Participation in Development Plans of Railways of the Islamic Republic of Iran Compiled by:Investment and Transportation Economy Bureau (Messrs. Eng. Behyar Senobari, Farajollah Javadzadeh, Farshad Kharazi, Dariush Azarnoush, Miss Hajar Akhavan Sales ) First edition:September 2015 Translation:International Affairs Bureau (Mr. Seyed Ebrahim Fazli Zenooz) Published by: Public Relations Bureau ( Mr. Sadegh Sakari, Miss. Maryam Mousavi Baladeh) Design & Graphic: Miss. Mojdegan Vaziri Content ------• Preamble...... 4 • Statistics of current status of RAI in 2014 ...... 6 • Freight transportation forecast (with consignment note), railway subsection and other alternatives till 2021 ...... 7 • Passenger transportation forecast, railway subsection and other alternatives till 2021 7 • infrastructure projects to increase the capacity of the network ...... 8 • Needed fleet for realization of 2021 objectives ...... 9 • The incentives and support packages of investment opportunities ...... 10 •16 category for investment opportunities ...... 13 • Infrastructure investment projects ...... 14 • Fleet investment projects ...... 28 •Map of infrastructure projects till 2021 ...... 38 - - - - - Iranian Perspective Document and till Iranian Perspective Document
Preamble Based on the must transportation rail intercity of the share 2025 the and from 10% grow up from 4% to 18% in passenger transpor in the entire to 30% in freight transportation tation of the country; to achieve the objectives of this of this the objectives to achieve of the country; tation to par it is necessary to pay more attention document, invest sector private the of attraction and ticipation infrastructure and fleet projects. ment in RAI’s areas in RAI are quite diverse and nu The investment due to high industry. merous due to broadness of the par in projects, railway the in investments of volume ticular infrastructure and fleet, first it is necessary for and support packages RAI to present the incentives
RAI 4 5 RAI - dustry. book this horizons, development the offering While introduces the investment opportunities in two fields of infrastructure and fleet, as well RAI’s as support ex- to sector private of the for participation packages ecute the said projects. upon introduction of investment opportunities in the opportunities of investment upon introduction of the project to and in line with feasibility industry, of investments if necessary to proceed with attraction of this in the way for growth and development pave 332 196 450 869 Qty. Qty. 2025 2821 8437 10420 22715 13241 Qty. 24461 24304 16269 34924 Set Set Set Set Km Km Km Km Km Km Unit Unit unit Thousand ton Million ton-km Million pass.-km Thousand persons Fleet Index Index Others Length of the by lines Existing and Future Plans Existing and Index Total length of the main lines Total Length of the electrified lines Total number of passenger cars number of passenger Total Total number of available locos number of available Total Total length of the existing lines Total Length of lines under double-tracked Total number of available freight cars number of available Total Length of the under construction lines Total freight payload Total Total tonne-kilometer Total Freight and passenger transportation Freight and passenger Statistics of current status of RAI in 2014 of RAI in status of current Statistics Total passenger-kilometer Total
Total number of carried passengers Total
RAI 6 7 RAI
2021
2021 24.3 24.4 and other alternatives till 2021 and other alternatives till and other alternatives till and other alternatives railway subsection and other alternatives till 2021 till and other alternatives subsection railway Passenger transportation forecast, railway subsection Passenger transportation railway subsection and other alternatives till alternatives and other subsection railway Passenger transportation forecast, railway subsection forecast, railway Passenger transportation Freight transportation forecast (with consignment note), note), (with consignment forecast transportation Freight Freight transportation forecast (with forecast Freight transportation consignment note), 13
12
196 8766 3191 3346 2033 Needed sources (Million Euro*) 158 5115 3073 1050 2804 4613 3069 10453 Operation volume (km) Total Tracking Project title Electrification concrete sleeper Double-tracking Improvement of lines the capacity of the existing lines existing of the the capacity Renovation and rebuilding of lines Renovation and rebuilding Construction and repairing the route Increasing the axle-load from 20 to 25 tons Increasing the axle-load from 20 to 25 Procurement and installation of switches with Procurement and installation of switches Table of infrastructure projects to increase to increase projects of infrastructure Table
6 7 8 4 5 3 1 2
No. * Exchange Rate: 1 EU = 40,000 IR Rials
RAI 8 9 RAI 56% 44% Share 100% 5007 3913 8920 Total (Million Euro*) 42 30 512 374 1511 1169 1444 1700 8920 2138 Needed sources (Million Euro*) 20 15 621 650 618 186 230 Qty. 1558 32398 28500 of 2021 objectives of 2021 Freight car Freight loco Type of fleet Type Passenger car Shunting loco Passenger loco Commuter train High speed train Light rescue org. Heavy rescue org. Table of the needed fleet for realization fleet for realization needed of the Table Total sector Private Investor Railway * Exchange Rate: 1 EU = 40,000 IR Rials opportunities packages for investment investment for packages The and supportincentives
Railway access charge for the charge access Railway 4-axled and 6-axled cars up to four ton-km hauled net 4 and 6 million during a period of max. 42 months (whichever occurs sooner) since will operation the of beginning the not charged. 1-Fixing access charge for 1-Fixing access charge for the new freight cars
RAI 10 11 RAI - private sector as in the form sector as in the private and a company of establishing up contracts PPP concluding cost for of the foreseen to 30% construction. investors thru execution and execution investors thru line new the of development process, based construction on an approved and agreed fi should received model nancial and for existing charge access new lines. 5- Paying the access 5- Paying the existing charge of the lines in double-tracking projects - - - - - 4- Possibility of partnership up to 30% of total investment cost assis credit and technical the of budget tance divided in needed years, through tance investors of the the to of LC opening ing coaches to pro related to support investments coach- of class 1 compartment curement of revenue the guarantee shall RAI es, of 90% of the 1200 km-day running 10 years purchased cars for a period of on the and operation after their entrance and paying condition of their availability according income saving fuel the 50% of person- for each return law in to Iranian equal investors max. 2023, for the km till to the amount of investment. 3- Support packages for procur ing freight/passenger fleets will be refund tives and infrastructure , locomo in the ceiling investment up to the main investors favor of the contractual from of income amount saving total The freight of ton-km each of transportation oil of gas is 20 cc and of gas oil is 35 cc for transportation of each passenger-km. - saving rev consumption 2- Fuel enue share new investment the spent capital Total in procur sector of the private projects - - - 7- Paying the facilities out7- Paying the Develop of the National ment Fund resources The corresponding banks can to 75% of the to pay equal for procur investments tal ing rolling stock, machinery, railway for the equipment sec- workshops to the private of submission (by investors tor an accepted technical, finan- economic feasibility and cial study) as the foreign exchange legal its on Based facilities. powers, RAI can guarantee maximum exchange rate fluc- tuations. - -
ing rolling stock, machinery, equipment stock, machinery, ing rolling workshops the private for the railway to of sector investors through conclusion funds and managed agreements agency banks (by corresponding the in deposited submission of an accepted technical, fi study).. feasibility economic and nancial shall be rate interest The preferential fixed from 8% to 16% according to the in the passenger and investment of type freight sections. There is a possibility to pay equal to 75% to equal pay to possibility a is There for procur amount investment of total 6- Paying the facilities out of the 6- Paying the managed funds It goes without saying that the amount amount the that saying without goes It payment charge access the of period and and calculated be shall the investor to of in- amount to the subject guaranteed period, and internal vestment, payback rate of return (IRR).
RAI 12 13 RAI - Title Locomotive fleet fare infrastructures Development of by lines Development of IT systems Development of IT Development of commuter trains Electrification of exiting network Construction of high speed railways Upgrading railway operating systems Fleet repair and maintenance workshops Freight and passenger transportation fleet Development of telecommunication systems Development of signaling and safety systems Construction of new lines and double-tracking Construction of multimodal transportation terminals Track construction maintenance and repair equipment Track Infrastructure of stations, welfare facilities for passengers Infrastructure of stations, welfare facilities 16 category for investment opportunities 16 category for investment Construction of training, managing infrastructures, passive, sports and cultural wel Construction of training, managing infrastructures, passive, sports and cultural 1 2 5 6 7 8 9 3 4 11 10 14 15 16 12 13 No. Infrastructure
in railways of in railways Iran
investment projects investment
RAI 14 15 RAI 4- Multi modal Terminals and Dry Ports 4- Multi modal Terminals 3- Electrification 2- Double tracking 1- Construction of new line of 1- Construction - - New Line Objectives Double-tracking Double-tracking and Electrification projects and Electrification
Increased running speed of freight and passenger trains. speed of freight and passenger Increased running Completion and development of freight transit routs in the exist •Completion and development ways network. ing network. Connection of freight & passenger hubs to the throughout rail •Connection of freight & passenger Meeting the demands for freight and passenger transportation by •Meeting the demands for freight the end of 2025. •Increased safety and smooth mobility. Removal of capacity bottlenecks on the entire network. bottlenecks on the entire •Removal of capacity •
RAI 16 17 RAI Province: Isfahan – Khuzestan – chaharmahal va Province: Isfahan – Khuzestan Bakhtiyari Dept.: Isfahan - Jonub of General Venue Mobarakeh-Borujen- Main cities on the route: hormoz Lordegan- Ize – Ram tons Capable of freight transportation, 45 million Capable of passenger transportation, 2 million passengers 2075 Million Euro* Min. a quarter of total investment amount 20 to 30 years 20% to 25% Isfahan – Ahvaz New line 545 km 1-New Line 1-New
Forecast of direct outcomes Total investment Total Equity of investor Expected Payback period: Min. IRR Location Title and volume Type
assumptions
Economic Economic Introduction of project of Introduction * Exchange Rate: 1 EU = 40,000 IR Rials * Exchange Rate: 1 EU = 40,000 IR ـــ 350 Million Euro* Min. a quarter of total investment amount 20 to 30 years 20% to 25% Rasht – Astara 164 km Province: Gilan of General Dept.: Venue Talesh Main cities on the route: 2.7 million tons Capable of freight transportation, transportation, 2 million Capable of passenger passengers
Capital share of investor Expected Payback period: Min. IRR Total investment Total Title Type and volume Type Location Forecast of direct outcomes
assumptions
Introduction of project of Introduction Economic Economic
* Exchange Rate: 1 EU = 40,000 IR Rials
RAI 18 19 RAI
pairs of pairs 3
pairs of of pairs trains Zanjan 22 22
– egharb 6.4 million tons 201 km) 201 Rials
Rials IR Zanjan Shomal- IR –
000 million tons
Km 000 40, Zanjan 19 –
40,
171 EU = EU * Ghazvin 1 EU = EU Chadormalou - Ardakan - Ardakan Chadormalou 1 -tracking (around (around -tracking Euro of General Dept.: Yazd Dept.: Yazd of General %
30 -tracking -tracking
30% Million Euro* Double Venue Venue Province: Yazd Province: Yazd Ardakan route: on the cities Main % to 2 years years 8 years * Exchange * Exchange Rate: Double
100 100 Capable of freight transportation (considering Capable transportation of freight capacity), existing • • • transportation, of passenger Capable trains 10 years10 25 Min. a quarter of total investment amount amount investment of total Min. a quarter 3 Main cities on the route: Ghazvin Ghazvin route: on the cities Main Province: Ghazvin Dept.: General of Venue * Exchange Rate: Rate: * Exchange
25% to
Capable of freight transportation, transportation, freight of Capable Capable of passenger transportation, transportation, passenger of Capable • • •
1 to
amount investment of total a quarter Min.
to 5
125 Million period period
Title Title Title Title Location investor investor
Location 2- Double-tracking outcomes of of
Type and Type volume investment
investment investment . IRR Type and Type volume . IRR Forecast of direct direct of Forecast
Forecast ofForecast direct outcomes
Equity Construction period Operation Min Total Min Total Equity period Operation Construction
assumptions assumptions
assumptions assumptions
Introduction of project project of Introduction
Introduction of project project of Introduction
Economic Economic Economic Economic 35 36
pairs of of pairs
Yazd pairs of trains of pairs
19.4 Qom 14 , million tons 5
, , 254 km) 254 km) Meybod
Rials 145 km) 145 km) IR Rials - Badroud - Badroud IR 000 Mohammadieh –
40,
000 40, transportation Meybod EU = EU 1
EU = EU
tracking (around tracking (around
1 Badroud - freight freight of General Dept.: Isfahan - Isfahan Dept.: General of tracking (around tracking (around - 30% years of General Dept.: Isfahan - Isfahan Dept.: General of Million Euro* 30% 3 years 10
Double Province: Isfahan - Yazd Isfahan Province: Venue route: on the cities Main % to to to years 10 years * Exchange Rate: Rate: * Exchange Double
Capable of passenger transportation passenger of Capable 142.5 amount investment total of a quarter Min. 2 8 25 • • • of Capable Main cities on the route: Kashan Kashan route: on the cities Main Province: Isfahan - Qom Isfahan Province: Venue Venue % to
* Exchange Rate: Rate: * Exchange
Capable of freight transportation, 5.62 million tons transportation, freight of Capable • • Capable of transportation, passenger trains 25 • 8 to
2 years
amount investment total of a quarter Min.
80 Million Euro*
period
period
Title Title Title Title period
Location
investor
of
investment Type and Type volume
investment
. IRR . IRR
Forecast ofForecast direct outcomes Location Forecast ofForecast direct outcomes Total Equity of investor Construction period Operation Min Type and Type volume
Total Equity Construction Operation Min assumptions assumptions
assumptions
project of Introduction
project of Introduction
Economic Economic Economic Economic
37
38
RAI 20 21 RAI
million tons
pairs of trains trains of pairs
Shazand
million tons 7.46 Lorestan – Arak 11.2 -
,
7.76 Doroud 130 km) 130 km) Rials Samangan Samangan , ,
Azna Azna 157 km) – IR Rials IR 000 Lorestan 40, 000
40, - Markazi - Markazi
EU = EU Samangan – Samangan 1 EU = EU
1 Markazi - Markazi Mohammadieh Mohammadieh tracking (around tracking (around
- tracking (around (around -tracking of General Dept.: Arak - Arak Dept.: General of of General Dept.: Qom Qom Dept.: General of 30%
30% Million Euro* 10 years 8 years % to Double Double Province: Main cities on route: the Venue Venue Province: Qom Main cities on Arak route: the Venue Venue * Exchange Rate: Rate: * Exchange
25 • • • Capable of freight transportation, transportation, Capable of freight of pairs 11.2 transportation, passenger of Capable trains • Capable of freight transportation freight of Capable transportation passenger of Capable 120 Million Euro* amount investment total of a quarter Min. 2 years 5 to • • 25% to * Exchange Rate: Rate: * Exchange
2 years
amount investment total of a quarter Min.
8 to 92.5
period
period period
Title Title Title Title Location investor
outcomes Location investment outcomes
of . IRR
investment Type and Type volume Forecast ofForecast direct
Type and volume Type . IRR Forecast of direct direct of Forecast
Equity of investor Construction Operation Total Min
Total Equity Construction assumptions Operation period Operation Min
assumptions assumptions
Introduction of project project of Introduction
Introduction of project project of Introduction Economic Economic Economic Economic 39
40
pairs of trains trains of 4 pairs million tons Yazd pairs of trains trains of pairs - 4 eHeydarieh Khorassan Razavi Khorassan
Mobarakeh Mobarakeh - – – Torbat-eHeydarieh Torbat-eHeydarieh – Rials
145 km) 145 km) ـــ IR Shargh Torbat
542 km) Tabas Tabas – Jandaq Shargh - Khorassan -Khorassan Shargh Rials – 40,000 : IR
EU = EU Tabas Tabas 000 Dept 1 – 40, khorasan-e jonubi khorasan-e –
tracking (around tracking (around -
30% EU = 1 EU
of General Dept.: Dept.: of General Yazd Yazd years 15 years Chadormalou Chadormalou Jandagh tracking (around (around -tracking % of General General of % to 30 Double * Exchange * Exchange Rate: Venue Venue Province: Yazd Yazd Province: route: on the cities Main
10 to Min. a quarter of total investment amount amount investment total of a quarter Min. 25 15 years years 4 years Double Capable of passenger transportation, Capable of transportation, passenger • • • 15 transportation, freight of Capable Province: route: on the cities Main Venue Venue % to * Exchange Rate: Rate: * Exchange Capable of freight transportation, 10.4 million tons transportation, freight of Capable Capable of passenger transportation, Capable of transportation, passenger amount investment total of a quarter Min. 25 • • • 3 to
3 years
10 to 105 Million Euro*
282 Million Euro*
period period
period
Title Title
Title Title Location outcomes Location investment investment
outcomes
. IRR . IRR. Type and Type volume Forecast ofForecast direct
Type and volume Type Forecast of direct direct of Forecast
Total Equity of investor Construction period Operation Min
Total Equity of investor Construction Operation Min
assumptions assumptions project project assumptions assumptions
Introduction of project of Introduction
Economic Economic Introduction of of Introduction Economic Economic
42
41
RAI 22 23 RAI
Bandar Bandar – million tons Bandar Abbas)
Bafq
–
– Hormozgan Bafq
– Sirjan Sirjan
613 km) 613 km) IRRials 000 Sirjan 40, (around (around
EU = EU route ( 1 Hormozgan Hormozgan
30% 4 years years 10years Million Euro* Electrification Hormozgan Venue of General Dept.: Yazd - Yazd Dept.: General of Venue Abbas Province: Main cities on route: the * Exchange Rate: Rate: * Exchange
25% to 7 to • • • 25 transportation, freight of Capable amount investment total of a quarter Min. Capable of passenger transportation, 4 pairs oftrains oftrains 4 pairs transportation, passenger of Capable
3 to
200 3- Electrification period
Title Title investor
Location outcomes of
investment
Type and Type volume Forecast of Forecast direct . IRR
Construction Total Equity period Operation Min
assumptions assumptions
Introduction of project of Introduction
Economic Economic 45
Type and rate Type of supports are determined as per the agreed financial model BLT (Build, Lease, Transfer) (Build, Lease, BLT * Support for packages
Support packages
Introduction to the National Development Fund Introduction to the National Contribution through fuel saving revenue Guaranteed minimum income payment existing and new lines for the Paying the access charge bank Possibility of issuing guarantees for the corresponding and Exchange Organization Possibility of issuing guarantees for the Securities above 10% annually Guarantee the exchange rate fluctuations, Proposed model of participation Transfer) (Build, Operate, BOT gratia up to 30% in investment as ex Possibility of RAI›s participation Proposed of model participationand * : According to Iranian budget law * : New Line, Double-tracking and Electrification projects and Electrification New Line, Double-tracking
RAI 24 25 RAI 42 Million Euro* Min. a quarter of total investment amount 3 years 20 to 25 years 15% to 17% •Construction a dry port (Total area 400 hectares) (Total •Construction a dry port •First phase, 35 hectares •Second phase , 165 hectares oriented container transport •development of rail transport port in railway net work •Construction a central dry 400000 TEU Transfer) (Build, Operate, BOT Aprin dry Port
Capital share of investor Construction period Operation period Min. IRR Total investment (35 hectares) Total Title and volume Type Objectives first phase Predicted capacity for the Proposed model of participation
Economic assumptions Economic Introduction of project of Introduction 48
investment projects in railwaysof investment Iran 4- Multi modal Terminals and Dry Terminals modal 4- Multi Ports •Construction a Multi modal terminal •Construction hectares) •(total area 1200 hectares •First phase 50 •Increase in transit transportation and marketing terminal, loading, storage •Construction Discharge in the export and import of goods •Increasing cross-border transactions 7 million tonne Transfer) (Build, Operate, BOT 62 Million Euro* amount Min. a quarter of total investment 3 years 20 to 25 years 15% to 17% Multi modal Incheh borun Multi modal
Objectives phase Predicted capacity for the first Proposed model of participation investment Total (50 hectares) Capital share of investor Construction period Operation period Min. IRR Type and volume Type Title
Economic assumptions Economic Introduction of project of Introduction
RAI 26
27 RAI
52
Fleet investment projects in railways of Iran
RAI 28 g Km Million ton-km Million Euro* Million Euro* Percent 31.5 Million Euro* 100% of total investment - 1 to 3 years 2.5 years %41 14.5 Million Euro* 10 years 150 960 28.5 16 25 Support packages Introduction of project Introduction Economic assumptions Interest rate of 14% □ Based on the revenue earned from fuel consumption savings □ to the amount of 1 Rls. Per 4 Stabilization of access charge million tons or 3.5 year Per each new wagon Financial and economic index Financial and economic *, note 2 of Increased rail transport freight share from the land goods in the country, reduced the country, share from the land goods in transport freight rail Increased fuel consumption and air pollution, reduced average life cycle of the freight fleet and promoted safety Investment in procurement of freight cars (with stabilization of access charge) of access freight cars (with stabilization in procurement of Investment wagon High-sided 600 wagons Qty. Title Type
Objectives
Subsidized Rial bank loan * credits of part 1 , the Budget Law (2014) Stabilization of access charge Total investment amount Total high-sided wagon in 2015, (foreseen price of each around 50,000 Euro*) Capital share of investor Amount of paid facilities Construction period Regular payback period Internal rate of return (IRR) Net present value (NPV) Evaluation period Daily traveling Annual freight transport capacity Annual revenue (reference year) Annual costs (reference year) Min. IRR * Exchange Rate: 1 EU = 40,000 IR Rials Iranian budget law According to * :
RAI 30 31 RAI
g Km Million ton-km Million Euro* Million Euro* Percent 34.5 Million Euro* 100% of total investment - 1 to 3 years 3 years %30 5.5 Million Euro* 10 years 117 749 22 11 25 Support packages Introduction of project Introduction Economic assumptions Interest rate of 14% □ Based on the revenue earned from fuel consumption savings □ to the amount of 1 Rls. Per 4 Stabilization of access charge million tons or 3.5 year Per each new wagon Financial and economic index Financial and economic *, note 2 of Increased rail transport freight share from the land goods in the country, reduced the country, share from the land goods in transport freight rail Increased fuel consumption and air pollution, reduced average life cycle of the freight fleet and promoted safety Investment in procurement of freight cars (with stabilization of access charge) of access freight cars (with stabilization in procurement of Investment wagon Low-sided 600 wagons Qty. Title Type Objectives Subsidized Rial bank loan * credits of part 1, the Budget Law (2014) Stabilization of access charge Total investment amount (foreseen price of each low-sided investment amount (foreseen price of Total 55,000 Euro*) wagon in 2015, around Capital share of investor Amount of paid facilities Construction period Regular payback period Internal rate of return (IRR) Net present value (NPV) Evaluation period Daily traveling Annual freight transport capacity Annual revenue (reference year) Annual costs (reference year) Min. IRR * Exchange Rate: 1 EU = 40,000 IR Rials Iranian budget law According to * : Ton-km Ton-km Million Euro* Million Euro* Percent 18 Million Euro* 100% of total investment - 3 to 5 years 3 years %32 3.5 Million Euro* 10 years 363600 198 Rls. 12 5.5 25 g Support packages Economic assumptions Introduction of project Introduction Interest rate of 14% □ Based on the revenue earned from fuel consumption savings Financial and economic index Financial and economic *, note 2 of Increased rail transport freight share from the land goods in the country, reduced the country, share from the land goods in transport freight rail Increased fuel consumption and air pollution, reduced average life cycle of the freight fleet and promoted safety Investment in procurement of freight loco in procurement of Investment Freight loco 10 locos Qty. Title Type
Objectives
Subsidized Rial bank loan * credits of part 1, the Budget Law (2014) Total investment amount (foreseen price of each loco in 2015, investment amount (foreseen price of Total Euro*) around 1.8 Million Capital share of investor Amount of paid facilities Construction period Regular payback period Internal rate of return (IRR) Net present value (NPV) Evaluation period Freight transport capacity (daily per loco) Revenue tariff Annual revenue (reference year) Annual costs (reference year) Min. IRR * Exchange Rate: 1 EU = 40,000 IR Rials Iranian budget law According to * :
RAI 32 33 RAI Ton-km Ton-km Million Euro* Million Euro* Percent 18 Million Euro* 100% of total investment - 3 to 5 years 7 years %26 175000 Euro* 10 years 363600 198 Rls. 10.5 5.5 25 g Support packages Introduction of project Introduction Economic assumptions Interest rate of 6% Based on the revenue earned from fuel consumption savings □ Financial and economic index Financial and economic , note 2 of the * Increased rail transport freight share from the land goods in the country, reduced the country, share from the land goods in transport freight rail Increased fuel consumption and air pollution, reduced average life cycle of the freight fleet and promoted safety Investment in procurement of freight loco (with Bank loan) freight loco (with in procurement of Investment Freight loco 10 locos 1, Qty. Title Type Objectives Bank loan *Credits of part Total investment amount (foreseen price of each loco in 2015, investment amount (foreseen price of Total Euro*) around 1.8 Million Capital share of investor Amount of paid facilities Construction period Regular payback period Internal rate of return (IRR) Net present value (NPV) Evaluation period Budget Law (2014) Freight transport capacity (daily per loco) Revenue tariff Annual revenue (reference year) Annual cost (reference year) Min. IRR * Exchange Rate: 1 EU = 40,000 IR Rials Iranian budget law According to * : - - Euro* Freight Passenger Million Euro* Million Euro* Euro* Percent 40 Million Euro* 25% of total investment 75% of total investment 2 to 4 years 6 years %29 1.6 Million Euro* 10 years 27.5 365 520,125 19 13 1800 25 g g Support packages Introduction of project Introduction Economic assumptions Interest rate of 6% Based on the revenue earned from fuel consumption savings (former 50% in)* □ coef with income guarantee for 1200 km per day, Traveling ficient of 75% Financial and economic index Financial and economic *, note 2 of Increased rail passenger transport share by RAI from the passenger share in the in share passenger the RAI from by share passenger transport rail Increased of acci amount reduced pollution, and air consumption fuel reduced country, railway the of cycle life average reduced damages, relevant and fatalities, dents, passenger fleet Investment in procurement of passenger coaches in procurement of Investment guarantee) loan and traveling (with Bank coaches of coach: first class compartment 50 coaches type Qty. Title Type
Objectives
Bank loan the Budget Law (2014) guarantee Traveling * credits of part 1, Total investment amount Total coach in 2015, around 800,000 Euro*) (foreseen price of each Capital share of investor Amount of paid facilities Construction period Regular payback period Internal rate of return (IRR) Net present value (NPV) Evaluation period Ticket price (for around 1200 km) Ticket Annual traveling Number of passengers Revenue (reference year) Annual revenue (reference year) Daily cost for loco Min. IRR * Exchange Rate: 1 EU = 40,000 IR Rials Iranian budget law According to * :
RAI 34 35 RAI - - Euro* Freight Passenger Million Euro* Million Euro* Euro* Percent 100% of total investment - 2 to 4 years 3.5 years %30 4.5 Million Euro* 10 years 40 Million Euro* 27.5 365 520,125 19 13.5 1800 25 g g *) Support packages Introduction of project Introduction Economic assumptions Interest rate of 14% □ Based on the revenue earned from fuel consumption savings (former 50% in *) Traveling guarantee for 1200 km per day, with income coef with income guarantee for 1200 km per day, Traveling ficient of 75% Financial and economic index Financial and economic *, note 2 of Investment in procurement of passenger coaches in procurement of Investment guarantee and (with traveling Increased rail passenger transport share by RAI from the passenger share in the in share passenger the RAI from by share passenger transport rail Increased of acci amount reduced pollution, and air consumption fuel reduced country, railway the of cycle life average reduced damages, relevant and fatalities, dents, passenger fleet coaches of coach: first class compartment 50 coaches type Qty. Title Type Objectives Subsidized Rial bank loan * credits of part 1, the Budget Law (2014) Traveling guarantee Traveling Capital share of investor Amount of paid facilities Construction period Regular payback period Internal rate of return (IRR) Net present value (NPV) Evaluation period Total investment amount Total coach in 2015, around 800,000 Euro*) (foreseen price of each Ticket price (for around 1200 km) Ticket Annual traveling Number of passengers Revenue (reference year) Annual revenue (reference year) Daily cost for loco Min. IRR * Exchange Rate: 1 EU = 40,000 IR Rials Iranian budget law According to * : g - Ton-km Million Euro* Million Euro* Percent Euro* Ton-km ton-km per day per loco 70 Million Euro* 100% of total investment - 2 to 3 years 4 years %32 14.5 Million Euro* 10 years 198 Rls. 36.5 25.5 25 27.5 404000 Interest rate of 14% □ Based on the revenue earned from fuel consump tion savings □ is %90 that means 360000 Support packages Introduction of project Introduction Economic assumptions Financial and economic index Financial and economic *, note 2 of the Budget Increased rail transport freight share from the land goods in the country, reduced the country, share from the land goods in transport freight rail Increased fuel consumption and air pollution, reduced average life cycle of the freight fleet and promoted safety Investment in rebuilding locos Investment Alstom loco 50 locos Qty. Title Type
Objectives
Subsidized Rial bank loan Annual revenue (reference year) Annual costs (reference year) Min. IRR Law (2014) Service purchase guarantee * credits of part 1, Economic assumptions Freight transport capacity (daily per loco) Revenue tariff Total investment amount Total each loco, 1.4 Million Euro*) (foreseen cost rebuilding Capital share of investor Amount of paid facilities Construction period Regular payback period Internal rate of return (IRR) Net present value (NPV) Evaluation period * Exchange Rate: 1 EU = 40,000 IR Rials Iranian budget law According to * :
RAI 36
RAI 38 39 RAI Tehran – Iran Tehran Website: http://www.rai.ir Website: & Transportation Bureau, & Transportation Fax no. +98 (0)21 55 12 41 69 Office and website of Office and website Railway HQ, Africa Blvd., Argentina Sq. Argentina Africa Blvd., Railway HQ, Address: west wing, 10th floor, Investment Investment west wing, 10th floor, Address: Investment and Participation Investment and Participation in Development Plans of RAI in Development Plans
Tel no. +98 (0)21 88 20 03 37, +98 (0)21 55 12 72 50 Tel
RAI 40