Iran and Turkey’s Birgiz have signed a memorandum of understanding (MoU) to build the 255km-long Tabriz-Bazargan highway.

Under the deal, Birgiz will conduct a four-month study to estimate the construction costs of the highway.

East Azerbaijan Governor General Esmaiel Jabbarzadeh said: "We agreed on the construction of Tabriz-Bazargan Highway with the Turkish company due to the capabilities of the Turkish company and also after it showed interest in the project.

"The Turkish investor has voiced his willingness to help the Ardabil municipality to construct a monorail system in the city, which will reduce the traffic problems of the city."

"East Azerbaijan and Turkey have jointly completed several major projects so far and I hope that this project will be a new beginning for bigger projects."

The highway project is expected to be completed in four years.

Ardabil governor general’s adviser Farzad Kisan said: "We have conducted talks with this investor for the construction of Ardabil-Tehran highway and Ardabil-Miyaneh railroad and its connection to Parsabad near the border with the Azerbaijan Republic, on the basis of a build-operate-transfer model."

"The Turkish investor has voiced his willingness to help the Ardabil municipality to construct a monorail system in the city, which will reduce the traffic problems of the city."

During a visit to Turkey in June by Iranian President Hassan Rouhani, Iran and Turkey have signed ten economic agreements.