Active Development AidData Chinese Aid

China Development Bank pledges EUR 15 billion line of credit for construction and production projects (linked to Record ID#101632)

€15M EUR

Funder	China Development Bank (CDB)
Recipient Organization	Government of Iran
Country	Iran
Start Date	Sep 16, 2017
End Date	Sep 03, 2026
Duration	3,274 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67067`

Grant Description

China Development Bank pledges EUR 15 billion line of credit for construction and production projects On September 16, 2017, a memorandum of understanding (MoU) was signed by the Central Bank of Iran and China Development Bank for a EUR 15 billion credit line to finance unspecified construction and production projects.

One project the MOU funded was line two of the Tabriz metro. The Iranian government allocated EUR 420 million from the Chinese fund for this project (see Record ID#101632). The new subway was to include 20 stations and be 22.4 kilometres long.

Reports of Chinese finance first appeared in 2022, and the funding was described as approved and awaiting the signature of the first vice president. However, as of February 2024, the Chinese allotment was described as finalized with allocation starting in March. Construction started in 2013 and was done by Khatam-al-Anbiya, a state-owned construction firm controlled by the IRGC.

On July 10, 2022, the Tabriz mayor announced that the project would be completed in summer 2024.

📋 Staff Comments

1. Sources vary as to whether this fund was denominated in dollars or euros. All sources for project ID#101632 indicate that the amount allocated for the subway project was in euros, so it was assumed that the entire loan was made in euros.

📚 Sources & References

Special Letter 741: 7 Analytical Report On The Visit Of The Governor Of The Central Bank To China (Two Out Of Two), اعطای اعتبارده میلیارد دلاری بانک 'توسعه' چین به پنج بانک ایرانی, یادداشت تفاهم ۱۵ میلیارد یورویی ایران با چین امضا شد, سرمایه گذاری ۳۵ میلیارد دلاری چینی ها در ایران, یاداشت تفاهم همکاری بانکی تا سقف 15 میلیارد دلار میان چین و ایران امضا شد, خط اعتباری 10 میلیارد دلاری چین به ایران, سیف: سرمایه های خارجی سرشار برای اقتصاد ایران در راه است
China's Overseas Development Finance
Iran
China Ink 15bln Banking MoU 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.