Hossein Mohammad Pour-Zarandi told the Fars New Agency on Saturday that the Chinese investments will be made over the next three to four years.
The official added that Iranian state funding was provided to purchase 60 carriages and 28 locomotives for the Tehran subway system last June.
China has also invested in the Sadr-Niyayesh Highway project and is also plans to cooperate in the Imam Ali Highway project.
Due to worsening air pollution and traffic congestion in the sprawling capital, most experts and urban planners have called for urgent action to expand the subway system crisscrossing Tehran now said to cover close to 100 square kilometers.
The Tehran Metro consists of four operational lines, with construction underway on two other lines. It is one of the biggest metros in the Middle East and is one of the cleanest in the world.