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CDB pledges $1.8 billion loan for 7 Steel Projects (Linked to Record ID#67485)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Iranian Mines & Mining Industries Development & Renovation (IMIDRO) |
| Country | Iran |
| Start Date | Jan 01, 2015 |
| End Date | Sep 10, 2031 |
| Duration | 6,096 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 41283 |
Grant Description
CDB pledges $1.8 billion loan for 7 Steel Projects According to a 9/30/15 ECCO source, China had agreed to provide 1.8 billion USD to 7 Iranian steel projects through an unspecified modality, in cooperation with the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) and China Metallurgical Group Corporation (MCC).
A 6/16/15 Kitco source indicates that the funding organization is China Development Bank (CDB), with Sinosure likely providing insurance, though this is unclear. Because of the nature of the project and its funding organization, it is likely this project is a loan.
According to a 5/29/14 S&P Global source, the seven steel projects were: 1) the Sepid Dasht Steel project (#67485), 2) Shadegan (also Shadgan) Steel in Khuzestan Province, 3) Baft Steel in Kerman Province, 4) Sabzevar Steel in Khorasan Province, 5) Myaneh (also Mianeh) Steel in East Azerbaijan Province, 6) Ghaenat (also Qaenat) Steel in Khorasan Province, and 7) Neyriz Steel in Fars Province.
Other than the Sepid Dasht project, the value of sub-projects under this umbrella project are unclear.
As of a 6/16/15 Trend News article, the contract for the Myaneh Steel project had been terminated, with the responsibility for the project solely held by IMIDRO.
The financing for these projects has been subject to unspecified difficulties involving the Chinese central bank and US sanctions on Iran, though the effect of this on the projects is unclear.
Staff Comments
The commitment year of the project is unclear. A 12/7/13 Mehr News source indicated that an MoU for unspecified steel cooperation had been signed in 2012, while a 12/16/14 Reuters article and a 12/26/14 Iran Times article indicated that funding had been secured in 2014. The funding amount and currency are also unclear. The Mehr News and ECCO sources give 1.8 billion USD, while an S&P Global source gives 1.8 billion EUR; the Kitco source gives 3 billion EUR. The ECCO source is taken as definitive.
Sources & References
- 中国为伊朗钢铁项目提供融资
- China’s MCC to invest €1.8b in Iran’s steel sector
- Iran says China-funded steel projects delayed by banking issues
- Pledged China investment in steel doesn’t show up
- China's MCC finances prospective Iranian steel plant
- Excess Capacity in the Global Steel Industry and the Implications of New Investment Projects
- Iran
- China come to terms on 7 steel projects
- Iran
- China come to terms on 7 steel projects Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Iranian Mines & Mining Industries Development & Renovation (IMIDRO)
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