Turkmenistan has scrapped a $700 million contract for an Iranian company to build a key section of a major new railway line along the eastern shore of the Caspian Sea passing through central Asia linking the two countries, Radio France International reported. Reports indicate the Iranian company was associated to the Revolutionary Guards.
Based on a report wired by AFP citing Turkmenistan state daily, this country cancelled a contract to build an intercontinental rail line between Kazakhstan, Turkmenistan and Iran valued at $696 million – equal to $550 million euros – signed with the Iranian company Pars Energy.
This contract was sealed in 2010. Turkmenistan President … said the Iranian company is not able to make good on this deal due to economic reasons.
The Turkmenistan president did not reveal further details of this contract. However, he added from now on Turkmenistan itself will assume the responsibility of building a portion of this railway.
This railway, known as the “North-South Corridor”, was to transfer goods to Europe through Kazakhstan and to the Persian Gulf through Iran.
The length of this railway was estimated at 910 kilometers, with 700 km passing through Turkmenistan, 120 km in Kazakhstan and only 82 km in Iran.
In 2007 during the Caspian Sea neighboring countries leaders’ summit, Turkmenistan, Iran and Kazakhstan signed a trilateral agreement on building a joint railway.
Based on the documents revealed by WikiLeaks and according to US diplomatic sources, the Pars Energy Company belongs to the Revolutionary Guards.