Completed Mixed AidData Chinese Aid

Chinese Government provides EUR 502 million loan for Lordegan Petrochemical Project (Linked to Record ID#41429)

€502K EUR

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Central Bank of Iran
Country	Iran
Start Date	May 31, 2014
End Date	Mar 25, 2032
Duration	6,508 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67061`

Grant Description

Chinese Government provides EUR 502 million loan for Lordegan Petrochemical Project On May 31, 2014, the Chinese Government provided an EUR 502 million loan to the Central Bank of Iran (CBI) for the Lordegan Petrochemical Project. The loan that supported this project was likely drawn from the line of credit captured in Record ID#41429.

The loan proceeds were to be used by the borrower to finance an EPC contract that was issued to HuaFu Engineering Co. (HFEC) and the Aviation Industry Corporation of China (AVIC).

The purpose of this project was to construct a petrochemical plant — with the capacity to produce 2050 tons of ammonia and 3250 tons of urea a day — in Falard District (or Felard District or بخش فلارد‎) within Lordegan County and Chaharmahal and Bakhtiari Province. As of March 20, 2015, this project had achieved a 3% completion rate.

By July 2017, it had achieved a 69% completion rate. The plant was officially inaugurated on or around November 26, 2020.

📋 Staff Comments

The Persian project title is تروشیمی لردگان.
Some sources report that the face value of the loan was EUR 504 million or EUR 470 million rather than EUR 502 million. This issue merits further investigation.
It is possible that the loan proceeds were on-lent by CBI to Lordegan Urea Fertilizer Company (LUFC), a subsidiary of Persian Gulf Petrochemical Industries Company (PGPIC). This issue merits further investigation.
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

Lordegan Petchem Plant Operational by 2018, بهره برداری از اولین طرح پتروشیمی 'فارس' با فاینانس چین
Lordegan Petrochem Plant Near Completion, زمان افتتاح پتروشیمی لردگان مشخص شد, واحد آمونیاک مجتمع پتروشیمی لردگان به بهره‌برداری رسید, پتروشیمی لردگان امسال بهره‌برداری خواهد شد, فاینانس چینی پتروشیمی_های ایران _ اقتصاد آنلاین
National Petrochemical Company, پتروشیمی لردگان - ویکی_پدیا، دانشنامهٔ آزاد, پتروشیمی لردگان افتتاح شد - ایسنا, پتروشیمی لردگان به بهره_برداری رسمی رسید - شانا, پتروشیمی لردگان نیازمند تخصیص اعتبار- اخبار استانها تسنیم _ Tasnim
HuaFu Engineering Co. (HFEC) Profile _ IranOilGas Network, en-project94-out_put, اعتبار اسنادی طرح پتروشیمی لردگان گشایش یافت - شانا, پتروشیمی لردگان توسط رییس_جمهور افتتاح شد _ شرکت کود شیمیایی اوره لردگان
Lordegan
Lordegan Urea Fertilizer Company _ Lordegan chemical fertilizer and urea Co_
China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran
Chinese financiers open €2 billion LC for Iran’s energy projects
China to Finance 7 Iranian Methanol Projects, مدیر شركت ملی پتروشیمی: استفاده از فاینانس چینی مشروط است مدیر شركت ملی پتروشیمی: استفاده از فاینانس چینی مشروط است 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

Central Bank of Iran

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