Completed Mixed AidData Chinese Aid

China Eximbank provides RMB 1.1 billion seller’s credit for 2x325MW Shazand Power Plant Project

¥1.1M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	China National Machinery Import and Export Corporation (CMEIE)\|Shanghai Electric Group Co., Ltd.
Country	Iran
Start Date	Dec 20, 2000
End Date	Sep 04, 2030
Duration	10,850 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66955`

Grant Description

China Eximbank provides RMB 1.1 billion seller’s credit for 2x325MW Shazand Power Plant Project On December 20, 2000, China Eximbank issued an RMB 1.1 billion seller’s credit to China Machinery Equipment Import and Export Corporation and the Shanghai Electric Group for the 2x325MW Shazand Power Plant Project.

The proceeds of the seller's credit were apparently used to on-lend to the Government of Iran and finance a commercial contract that it signed with China Machinery Equipment Import and Export Corporation and the Shanghai Electric Group in June 1996.

The Chinese contractors were responsible for designing a power plant in the city of Shazahand within Iranian Azerbaijan (Shazand County, Markazi Province) with two 325,000 kilowatt generating units.

They were also responsible for engineering management, civil engineering, and equipment installation (including boilers, steam turbines, generating sets, meter control systems and electricity systems). The originally expected project completion date was March 20, 2004.

This first power generation unit was commissioned in 2004 and the second power generation unit was commissioned in 2005.

📋 Staff Comments

The Chinese project title is 伊朗Sahand热电站, 2×325MW. The Persian project title is نیروگاه شازند.
According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 4.5756-years in 2000. AidData estimates the grace period of the China Eximbank loan that supported the 2x325MW Shazand Power Plant Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 12.0664-years in 2000. AidData estimates the maturity of the China Eximbank loan that supported the 2x325MW Shazand Power Plant Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 7.3739% in 2000. AidData estimates the interest rate of the China Eximbank loan that supported the 2x325MW Shazand Power Plant Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0

📚 Sources & References

China and Iran: Partners Perfectly Mismatched
Eximbank Finances Iranian Power Plant
Khoda Afarin Dam
East Azerbaijan Power Generation Company
Shazand Thermal Power Plant - Google Search, شرکت مدیریت تولید برق شازند
Shazand (Arak) Thermal Power Plant Iran - GEO
中国进出口银行出口卖方信贷支持电力项目70个
SNPTC Shanghai Power Equipment Research Institute
上海电力修造总厂有限公司
Sinomach unit share offering seeks HK$3b _ South China Morning Post
Anhui Tiankang (Group) Co.
Ltd.brief introduction, 2nd Unit of Sahand Power Plant Operational by Year-End - Shana
Private Sector to Launch Sahand Power Plant - Shana
Sahand Thermal Power Plant Iran - GEO 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.