Active Mixed AidData Chinese Aid

China Eximbank provides $326 million buyer’s credit loan for 448MW Zanjan 1 Gas-fired Combined Cycle Power Plant Project

$326M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Power Control Engineering Company
Country	Iran
Start Date	Jan 01, 2017
End Date	Mar 05, 2029
Duration	4,446 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66999`

Grant Description

China Eximbank provides $326 million buyer’s credit loan for 448MW Zanjan 1 Gas-fired Combined Cycle Power Plant Project In 2017, China Eximbank issued a $326 million buyer’s credit loan agreement to Power Control Engineering Company for the 448MW Zanjan 1 Gas-fired Combined Cycle Power Plant Project.

A sovereign guarantee was provided for this loan.

The proceeds of the loan were used to be used by the borrower to partially financed an EPC contract with China National Electric Engineering Co (CNEEC), which was officially signed on August 28, 2015.

The purpose of the project is to construct a 448MW combined cycle power plant near the village of Chovrovk at the 75 km along the Zanjan-Tabriz highway. The construction of the plant is being implemented on a Build-Own-Operate (BOO) basis. CNEEC is the EPC contractor responsible for implementation. PowerChina also seems to be involved (most likely as a subcontractor).

Construction began on August 25, 2016 and the project duration was estimated to be 48 months. But it is unclear whether/when this project was completed.

📋 Staff Comments

This project is also known as the Soltanieh Combined Cycle Power Plant Construction Project. The Chinese project title is 伊朗赞詹项目 or 赞詹燃机联合循环电厂项目. The Persian project title is نیروگاه سیکل ترکیبی زنجان or نيروگاه 484 مگاواتي زنجان.
It appears that this project is being financed through an EPC plus Financing (EPC+F) contract with CNEEC. Therefore, China Eximbank most likely extended a loan to the EPC contractor (CNEEC) but with a sovereign guarantee from the Iranian Government. This issue merits further investigation.
The loan commitment year is uncertain. For the time being, AidData treats 2017 as the loan commitment year because it is the year when Iran’s Ministry of Economy disclosed the existence of the loan.
The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.

📚 Sources & References

نیروگاه زنجان 1 با فاینانس چین ساخته می شود, سرمايه گذار : شركت كنترل قدرت
伊朗副总统出席电建集团总承包的燃机项目开工典礼
伊朗: 项目列表
中国电建湖北院中标伊朗赞詹燃机项目
Zanjan 1 combined cycle power plant
CNEEC Secures Contract for Iran Lamerd 484MW Gas-fired Combined Cycle Power Plant Project, 12 میلیارد دلار فاینانس‌های برجامی در مرحله نهایی جذب, 12 طرح از هفت خان تأمین مالیخارجی/ 38 درصد فاینانس‌ها بهنیمه‌راه رسید+جدول, ساخت نیروگاه های برق با مشاركت بخش خصوصی توسعه كشور را به همراهدارد, ارائه گزارش بانک مرکزی در خصوص توافقات تأمین مالی با چین در جلسه هیئت, نیروگاه زنجان 1 با فاینانس چین ساخته می شود - اخبار رسمی, نیروگاه سیکل ترکیبی زنجان 1 – شرکت فنی و مهندسی کنترل قدرت
HUBEI HONGYUAN POWER ENGINEERING CO.,LTD
SINOMACH (China National Machinery Industry Corporation) _ UANI
Zanjan 1 combined cycle power plant – PowerControl Enginnering, نیروگاه 484 مگاواتی كهنوج به بهره برداری می رسد - ایرنا, عملیات احداث نیروگاه سیکل ترکیبی ۵۰۰ مگاواتی زنجان آغاز شد - خبرگزاری مهر _ اخبار ایران و جهان _ Mehr News Agency, آغاز ساخت نیروگاه سیکل ترکیبی زنجان یک _ خبرگزاری صدا و سیما
China's Overseas Development Finance
China-Germany Co-Innovation Platform 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

Power Control Engineering Company

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