(MENAFN) Iran's National Development Fund (NDF) has proposed a USD2.5 billion credit line to the Ministry of Transport and Urban Development to support the acceleration of major transport infrastructure projects and improve the country's logistics capabilities. This proposal was discussed in a joint meeting between Transport and Urban Development Minister Farzaneh Sadegh and NDF Chairman Mehdi Ghazanfari. According to IRNA, the allocation aims to finance key transportation initiatives that are essential for advancing Iran’s economic growth and enhancing its transportation network.

Ghazanfari emphasized the critical role that the transport sector plays in the national economy, stressing the need for more innovative financial solutions to drive progress in infrastructure projects. He pointed out that traditional investment models had proven ineffective in achieving desired outcomes, highlighting the necessity of adopting more complex and efficient financial strategies to ensure tangible results. This shift in approach is seen as crucial for overcoming the challenges faced by the sector in recent years.

The NDF Chairman also underscored the importance of timely loan repayments, referring to past difficulties, such as delays in reimbursing funds for projects like the Mashhad metro. Ghazanfari used this experience to advocate for financial models that balance economic feasibility with structured repayment terms. He noted that successful repayment examples, such as those in the shipping and tanker sectors, could serve as models for other industries. The NDF is prepared to allocate the proposed USD2.5 billion, contingent upon carefully structured repayment terms being agreed upon.

Officials at the meeting agreed on the necessity of prioritizing key projects within the rail, road, and maritime sectors. Ghazanfari urged the Ministry of Roads and Urban Development to present its priority projects, which will be reviewed for potential funding, with the aim of ensuring the efficient implementation of vital infrastructure initiatives across the country.

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