The agreement was signed between Keramat Veis-Karami, managing director of the National Iranian Oil Products Distribution Co., and Adel Pir-Mohammadi, CEO of Iran Khodro, according to the company’s statement. The signing coincided with Government Week.

Funding will come from savings in natural gas consumption and government support under an approval by the Supreme Economic Council.

Last year, with backing from the oil products distribution company, Iran Khodro successfully produced and supplied 45,000 dual-fuel vehicles.

Officials said the program falls under Article 12 of the “Law on Removing Barriers to Competitive Production” and is considered one of the country’s most successful initiatives to support domestic automaking and expand the national transportation fleet.