TEHRAN (IRNA) -- The government-owned Iranian Railways and private sector Iran Power Plant Projects Management Company (MAPNA) here Tuesday signed an agreement with Germany's Siemens company for construction of 150 locomotives.

As per the agreement, the Iranian Railways Company will import 30 completely built (CBU) locomotives in the first phase, MAPNA managing director Musa Refan said.

He added that in succeeding phases, factories will be established in Iran to manufacture spares for 120 other locomotives that will be wholly produced in Iran.

He said the total value of the project stands at 450 million euros, 300 million euros of which will be the German company's share and 150 million euros the share of the Iranian side.

The official added that the agreement is the biggest ever entered into by Iran's transportation industry and the most costly joint venture in this field.

He said the project will be implemented by a consortium comprising Siemens (as the foreign partner for technical know-how) and MAPNA Railways Industries and MAPNA Europe (as the domestic partner).

Refan said that the project will be carried out within a 6.5-year period and that the 10-year agreement provides for a transfer of know-how to the Iranian side and a license for design and engineering of major parts of the locomotives.

He added that 500 direct and 1,500 indirect job opportunities are expected to be created before inauguration of the project.

Some 900 direct and 2,600 indirect job opportunities will also be created after inauguration of the project, the MAPNA managing director added.

With respect to the legal and executive regulations of Iran, he said the Iranian and German sides have signed the agreement for construction of the high-speed locomotives within the framework of four separate agreements.

The Iranian Railways, MAPNA and its international companies signed the agreement for construction of 150 locomotives while the agreements for purchase and construction of locomotives was inked by MAPNA and a consortium comprising Siemens, MAPNA Railway Industries and MAPNA Europe.

Siemens and MAPNA Railway Industries signed the agreement on transfer of technical know-how and license for construction of the locomotives while the agreement on joint cooperation was inked by Siemens and MAPNA Railway Industries and MAPNA Europe.

MAPNA has designed, provided equipment, constructed and invested in over 85 percent of Iran's electricity production which included some 32,000 MW with total value of 13.9 million dollars.

Iran's Minister of Road and Transportation Mohammad Rahmati and Minister of Mines and Industries Ali-Reza Tahmasbi were present at the signing ceremony.