May. 14, 2012 (China Knowledge) - Norinco International Co Ltd<000065
>, a subsidiary of China North Industries Corp, announced that it had inked an agreement with Tehran Urban & Suburban Railway Operation Co on May 9.
The transactionis worth US$1.22 billion or about RMB 7.87 billion, said Norinco International.
According to the agreement, the Chinese contractor will take over the construction of Tehran Metro Line 6 project, including building projects, electromechanical system, installation and testing run.
However, the Tehran Urban & Suburban Railway Operation Co needs to pay atotal of US$ 74.6 million fees comprisingadvance payment, management fee and insurance expenses to Norinco International before the project could take place.
It is not the first time thesetwo companies have worked together, Norinco International has maintained thebusiness relationship with Tehran Metro for three years, sources reported.