In a recent development, Mehdi Chamran, the head of the Tehran City Council, has come forward to defend a secretive contract worth two billion euros with a Chinese construction firm for the procurement of electric buses.
Chamran emphasized on Sunday that the specifics of the agreement are deemed confidential, citing concerns over security implications associated with its disclosure.
Moreover, he asserted that the contract underwent scrutiny under the oversight of the Ministry of Foreign Affairs and the Central Bank. Chamran pointed out that a similar arrangement had been established back in 2017, indicating a precedent for such dealings.
Nevertheless, recent revelations have spurred criticism and raised apprehensions among members of the city council regarding the municipality’s clandestine engagements with the Chinese entity, particularly concerning the importation of transportation and traffic surveillance apparatus.
Signed by Mayor Alireza Zakani, the contract is anticipated to be financed through proceeds garnered from Iran’s oil exports to China and accumulated funds amidst ongoing US sanctions.
During a visit to China in January, Zakani affirmed the signing of multiple agreements, including a 1.67 million euro pact within the transportation domain. The deal encompasses a range of items such as electric buses, vans, taxis, subway cars, and traffic monitoring cameras. However, despite these disclosures, intricate details of the contract remain undisclosed, prompting urgent appeals for transparency from Tehran city council members and the media.
The funding mechanism of the contract has also sparked inquiries. Tehran’s municipal government lacks direct access to substantial foreign currency reserves, which are typically under state control. Speculations suggest that the authorization for the project may have originated from the office of Supreme Leader Ali Khamenei.
Further intensifying the controversy, whistle-blower Yashar Soltani recently unveiled on his website that the Chinese firm tasked with importing public transport vehicles to Tehran is relatively nascent, having been established only in 2010. Soltani highlighted “numerous violations” in the agreement between the Chinese company and Tehran Municipality, adding another layer of complexity to the unfolding situation.