"Signing ceremony of the Memorandum of Understanding between the Chinese Sinosteel Engineering and Equipment Company and the Arak Municipality"
Arak municipality meeting for signing ceremony of the Memorandum of Understanding with Sinosteel Co. was held at the City Council Meeting Hall with the presence of members of the council and mayor of Arak, along with a representative of Beijing sinosteel company of China.
The terms and conditions of the Chinese company's participation in financial investment in various sectors in the metropolis of Arak are included in the case status of this memorandum.
Representative of China's Sinosteel company, said the company is related to the central government of China, and so far, it has implemented various projects in the field of engineering, purchasing goods, roads, construction, petrochemicals and hospitals in Iran with an investment rate of 2.5 billion dollars.
Li Qi adds: Seino Steel Corporation has executed 150 construction and service projects in more than 40 countries and has strong links with the Chinese government in the implementation and bringing finance to Iran.
He argued that the company was prepared to invest in the Arak metropolitan area, hoping that in the wake of this investment, successes and good results would be achieved for each of the two countries.
Pointing to the potential of the city of Arak regarding investment by the company, Arak's mayor said: At the outset, the scope and quality of the activities of the state-owned sinosteel company in China was investigated by the municipality and given that the company signed a memorandum of understanding in the municipality of Tehran, the decision has been made to invest in Arak.
The mayor of Arak said at the meeting that there are several grounds for investing in the metropolitan area, which after being identified, could be presented as a program for investors.
Davood Tajeran added that during the past month negotiations have been made with Sinosteel, which is one of the nine state-owned enterprises in China, to invest in the metropolis of Arak.
He stated that the support of the government and the Ministry of Economy and Finance and the investment vice president of the ministry will have an important role in accelerating the investment of the company in Arak metropolitan area, and it is planned to hold a meeting in Tehran in this regard.
The Arak mayor continued: Arak's investment priority is to implement a 58-meters plan, urban rail transport and recreational and sports facilities.
Iraj Rezaei, member and treasurer of the Arak metropolitan council, said: Iran is one of the safe countries for foreign investors, and Arak metropolitan area also has high potential for various investments.
He added that the use of the finance method is a kind of purchasing credit, which, in the form of short-term credits, creditor banks give credit to buyers.
This member of the Arak metropolitan council continued: The contract for these types of funds will be signed in the presence of an active credit line between the Iranian and foreign banks (accredited) under the supervision of the Central Bank.
Rezai stated: Financial contracts mean that a bank or foreign business entity pays a facility to a country or a certain company for a specific operation; In fact, there is no control over the cost of the capital, there is no obligation to make the project, and in the determined amount, it receives the principle of capital and its profit from the contractor or the bank guaranteeing the contract.