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TEHRAN Lorenzo Mauldin Jersey , Aug. 8 (Xinhua) -- German Siemens group will finance 3.5 billion U.S. dollars in Iran's rail and power plant projects, Press TV reported on Tuesday.

""On a trip to Germany, we had discussions about Siemens' participation in Iran's railway and power plant projects,"" Deputy Minister of Road and Urban Development for International Affairs Asghar Fakhriyeh-Kashan was quoted as saying.

In the rail sector, Iran is going to buy a number of wagons from Siemens for use on a high-speed line between the capital Tehran and the central cities of Qom and Isfahan, Fakhriyeh-Kashan said.

Siemens will also provide signaling equipment and install communication signs, he said.

Besides, Siemens plans to enter into a joint venture with Iran's MAPNA Group both in the power plant and locomotive manufacturing sector in order to boost domestic production, he said.

MAPNA Group is a conglomerate of Iranian companies involved in development and execution of thermal and renewable power, oil & gas, railway transportation and other industrial projects as well as manufacturing main equipment.

Iran and Siemens reached a preliminary agreement in March to jointly manufacture equipment for electricity industry and power equipment under the license of the German firm, Arsalan Fathipour, the official from Iran Electricity Industry Syndicate, said.

The agreement with the German company also encompassed the transfer of know-how as well as construction of new equipment for power generation industry, he said.

The official said that the plant would be built in Parand, a town about 65 kilometers southwest of Tehran.

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