Active Development AidData Chinese Aid

Chinese Government provides RMB 1.7 billion loan for Phase II of the Main Irrigation and Drainage Network of the Khuzestan Province (Linked to Record ID#66924)

¥1.7M RMB

Funder	Unspecified Chinese Government Institution
Recipient Organization	Government of Iran
Country	Iran
Start Date	Jan 01, 2019
End Date	Jul 01, 2029
Duration	3,834 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66925`

Grant Description

Chinese Government provides RMB 1.7 billion loan for Phase II of the Main Irrigation and Drainage Network of the Khuzestan Province In 2019, the Chinese Government was expected to provide an RMB 1.7 billion term loan for Phase II of the Main Irrigation And Drainage Network of the Khuzestan Province.

The borrowing terms are unknown. The purpose of this loan is to cover 85% of the total project cost equal to RMB 4 billion. The Iran Ministry of Energy would finance the remaining 15%.

The financing is expected to be "completed" in 2020 so it is unclear if Chinese financing was actually secured for Phase II of this project. This phase will help rehabilitate 550,000 hectares of land in Khuzestan. The project is expected to create 300,000 new jobs and give farmers 16,000 billion tomans in income.

So far 255,000 hectares have been completed and the 255,000 hectares and the underground drainage at the level of 197,000 hectares are being implemented and is expected to be completed by 2023.

The Jahad Nasr institute, a subsidiary of the Iran Ministry of Agriculture, was studying the project and is an implementing agency.

📋 Staff Comments

The project is certainly being studied by the Jahad Nasr Institute (' اقدامات فاز دوم طرح احیای ۵۵۰ هزار هکتار اراضی کشاورزی خوزستان و ایلام, source ID#155570) and they have received credit from the Iranian government to continue studying the project. However, it is not clear that they have actually received Chinese funding.
The Jahad Nasr institute is sometimes spelled 'Jihad' in translation but their own website's URL is 'Jahad', so that is the spelling that was used.
'Phase two of Khuzestan Plain Rehabilitation Project' is called 'فاز دو طرح احیای دشت خوزستان هزار' in Farsi. The general 'Khuzestan Plain Rehabilitation Project' is called 'طرح احیای دشت خوزستان هزار' in Farsi. It is also known as 'the Supreme Leader's Plan' or 'طرح مقام معظم رهبری' in Farsi.

📚 Sources & References

اجرای بخشی از دو طرح ٥٥٠ هزار هکتاری خوزستان با فاینانس چین, فاز دو طرح احیای دشت خوزستان ۱۲ هزار میلیارد تومان اعتبار می‌خواهد, فاینانس ۱.۷میلیاردی چین برای احیای ۵۵۰ هزارهکتار از اراضیخوزستان
China to provide $1.7 billion in Iran projects despite sanctions, برگزاری نشست خبری مدیر عامل موسسه جهاد نصر به مناسبت فرا رسیدن هفته دولت, اجرای مرحله دوم طرح احیای دشت‌های خوزستان و ایلام با تامین آب و اخذ فاینانس, اقدامات فاز دوم طرح احیای ۵۵۰ هزار هکتار اراضی کشاورزی خوزستان و ایلام 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.