TEHRAN A Chinese company is to invest $100 million in a project for building subway network from the city of Mehrshahr to Hashtgerd, west of Tehran.

Director of the Public Relations Department at the New Cities Development Company, affiliated to the Housing and Urban Development Ministry, Kamran Mardomi told IRNA that the subway line is 25 kilometer long with three stations.

Mardomi said the Chinese company needs guarantee for repayment of its credit by the Central Bank of Iran (CBI).

The agreement to carry out the project was reached between the two countries in the course of President Mohammad Khatami's visit to China in July, said Mardomi.

He added that the contract for the project was signed in January by Iran's Minister of Housing and Urban Development Ali Abdolalizadeh and managing directors of the New Cities Development Company and of the Subway Organization as well as officials of the Chinese company.

Mardomi said the project is expected to be implemented within a period of four years.

(IRNA)