Iran Railways and Italy's state railway company Ferrovie dello Stato signed a memorandum of understanding to develop two high-speed links in Iran.

The $1.36 billion project was announced at a ceremony on Tuesday with Saeed Mohammadzadeh representing the Islamic Republic of Iran Railways and Renato Mazzoncini, CEO of Italy's Ferrovie dello Stato present.

The project will develop a high-speed rail connection between Qom, Arak, Tehran and Isfahan. Cooperation between Iranian and Italian universities is also a part of the project.

The Fars news agency quoted Saeed Mohmmadzadeh saying "One percent of oil and gas sales has been dedicated to rail development in Iran's sixth development plan,"

Iran's current rail network has 10,000 km and 7,500 km are already under construction. According to the plans Iran wants to expand its rail network to 25,000 km (15,500 miles).

French company AREP signed $8 million deal April 2015 to modernize train stations, in Tehran, Qom and Mashhad.

based on AP and Reuters