Export-Import Bank of China (EXIM) signed a $1.5-billion deal to finance the electrification of a high-speed rail line between the Iranian cities of Tehran and Mashhad, said a report.

China National Machinery Import and Export Corporation (CMC) will be responsible for the electrification of the 926-km line from the capital to the holy city in northeast Iran in partnership with the Islamic Republic of Iran Railways (IRIR), according to Iran Daily.

Iran's holding group Mapna is a subcontractor in the project. It has signed an agreement with Germany's Siemens for the joint manufacture of 70 electric locomotives to be used on this route.

China Railway Group Limited (CREC) is already carrying out another project worth $1.8 billion for the electrification of a high-speed rail link between the cities of Tehran, Qom and Isfahan, stated the report.

Exim has so far provided loans for 26 Iranian projects in the electricity, petrochemicals, non-ferrous metals, oil and gas sectors, worth $9 billion, it added.