Active Mixed AidData Chinese Aid

Chinese Government extends EUR 2 billion line of credit for 4 Petrochemical Projects (Linked to Record ID#67061, #67638, #67640, #85278, #85279, and #85271)

€2M EUR

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Iran
Country	Iran
Start Date	Jan 01, 2014
End Date	Jan 28, 2030
Duration	5,871 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`41429`

Grant Description

Chinese Government extends EUR 2 billion line of credit for 4 Petrochemical Projects According to an Azernews source published on August 22, 2014, an unspecified Chinese Government institution had opened a 2 billion EUR line of credit for 4 petrochemical projects: Masjed Soleiman (also Masjed-i-Suleiman) Petrochemical Complex (see Record ID#67638), the Lordegan Petrochemical Project (see Record ID#67061), Sabalan Methanol Unit Project (see Record ID#67640), a petrochemical complex in Bushehr (see Record ID#85278), a petrochemical plant in Gachsaran (see Record ID#85279), a petrochemical plant in Pars Special Economic Energy Zone (PSEEZ) (see Record ID#85271).

📋 Staff Comments

This project should not to be confused with #41274, which captured a 4.5 billion USD loan for 12 petrochemical projects.It is not definitely clear if project ID#67061, #67638, #67640, #85278, #85279, and #85271 are from this credit line. It's AidData's deduction from existing resources. The financier of this project is unknown. However, around the time that this project was financed, China reportedly owed Iran over $20 billion in oil payments. This funding was frozen in overseas banks after US-led sanctions made it difficult for Beijing to transfer money to Tehran. Iran and China reportedly reached a deal to settle some parts of the frozen money through China’s funding of Iranian petrochemical projects.Also, in 2017, a Vice President of China Eximbank reported (see 'China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran') that it had financed 26 electricity, petrochemical, oil and gas and nonferrous metal projects in Iran worth $9 billion. Therefore, China Eximbank is the most likely funder of this project.

📚 Sources & References

Several petchem projects to come online
China agrees to finance five petchem projects
Chinese financiers open €2 billion LC for Iran’s energy projects
China to Finance 7 Iranian Methanol Projects
China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran
China Opens $2b Credit for Petrochem 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.