TEHRAN – Preliminary agreements have been reached in order for Iran’s Ministry of Defense to build 220 passenger wagons for the nation’s railroad sector, the Persian service of ISNA news agency said on Sunday.

Iranian Ministry of Roads and Transportation is prepared to conclude a €200 million agreement with Ministry of Defense and a consortium consisting of an Italian company over the building of 220 passenger train carriages for the Railroad of the Islamic Republic of Iran (RAJA), the report said. It added that the wagons should be delivered to Iran’s railroad company within a period of not later than 50 months. The contract will be ready for final approval in Tehran, on Dec. 19.

In addition to the contract, Shahid Kolahduz, an industrial complex affiliated to the Ministry of Defense will assemble 120 other wagons for the railroad company.

A German company has undertaken to produce in Iran the buggies required for the 220 train coaches ordered by the Ministry of Roads and Transportation, the report quoted a statement released by the ministry.