Completed Mixed AidData Chinese Aid

Chinese Government provides RMB 4.112 billion loan for Masjed Soleiman Petrochemical Complex Construction Project (Linked to Record ID#41429)

¥4.11M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Masjed Soleyman Petrochemical Industries Co. (MISPI)
Country	Iran
Start Date	Nov 16, 2014
End Date	Jan 28, 2031
Duration	5,917 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67638`

Grant Description

Chinese Government provides RMB 4.112 billion loan for Masjed Soleiman Petrochemical Complex Construction Project On November 16, 2014, the Chinese Government provided an RMB 4.112 billion ($624 million) loan to Masjed Soleyman Petrochemical Industries Co. (MISPI) — a majority (66.5%) state-owned Iranian company — for the Masjed Soleiman Petrochemical Complex Construction Project.

The proceeds of the loan were to be used by the borrower to finance an EPC contract that was issued to a consortium of firms consisting of Switzerland’s Casale SA, Japan’s Toyo Engineering Corporation, China’s Wuhan Petrochemical, and Iran’s Petrochemical Industries Design and Engineering Company (PIDEC).

The purpose of the project was to construct a petrochemical plant that is capable of 660,000 tons per year of ammonia and 1,073 tons per year of urea. The plant is to be fed by 861 million cubic meters per year of natural gas (extracted from the Zilayee gas field).

The plant is located on a 400-hectare plot of land in the Zeilai (Zilayee) area within the city of Masjed Soleiman and Khuzestan Province. It is adjacent to Lali Road (Haft Shahidan area) and 11.5 km south of Karun River. Construction began in March 2013 and the originally expected project implementation end date was July 16, 2019.

As of May 2018, the project had achieved a 75% completion rate.

Subsequent reporting indicates that the project eventually reached a 94% completion rate and it was expected to achieve completion in February 2021. The Masjed Soleiman petrochemical complex was ultimately put into operation on May 30, 2021.

📋 Staff Comments

The Persian project title is مجتمع پتروشیمی مسجد سلیمان or مجتمع پتروشیمی مسجد سلیمان .
Sinopec Corp. Wuhan Company (abbreviated “Wuhan Company'') and Sinopec Assets Management Co., Ltd. Wuhan Branch (abbreviated “Wuhan Assets Company'') are collectively called Wuhan Petrochemical. It is a large state-owned enterprise directly subordinate to Sinopec Group. Its predecessor is Wuhan Petrochemical Works, founded in 1971.
The loan that supported this project was very likely drawn from the line of credit captured in Project ID#41429 or the line of credit captured in Project ID#41501.
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

Chinese Investors Start €800mln Financing of Iran's Petrochemical Units
Parliament Speaker: Iran's Energy Sector Ready for China's Investment
First Chinese LOC for Petrochem Project
Masjed Soleiman Petrochemical Complex _ NrgEdge
Masjed Soleyman Ammonia Plant Online by Mid-2020 - Shana
Masjed-Soleyman Petrochem Plant Construction in Final Phase _ Financial Tribune
MISBP, مجتمع پتروشیمی مسجد سلیمان بهمن ماه به بهره برداری می رسد - ایرنا, شرکت صنایع پتروشیمی مسجدسلیمان, عملیات نصب تجهیزات آمونیاک شرکت پتروشیمی مسجدسلیمان آغاز شد - ایسنا, مدیرعامل شرکت ملی صنایع پتروشیمی_ واحد آمونیاک پتروشیمی مسجدسلیمان سال ۹۸ راه_اندازی می_شود, دست پر «وصندوق» برای سهامداران _ تأمین مالی ۵ میلیارد یوانی پتروشیمی مسجد سلیمان محقق شد - صدای بورس, مدیرعامل بیمه سینا از پتروشیمی مسجد سلیمان بازدید کرد - فراسو خبر
National Petrochemical Company
Petrochem Industry Key to Development _ Financial Tribune
SINOPEC Wuhan Company
China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran
China to Finance Petrochemical Projects in Iran: Official
China’s EXIM bank to fund Iran projects
China Opens $2b Credit for Petrochem Projects, مدیر شركت ملی پتروشیمی: استفاده از فاینانس چینی مشروط است مدیر شركت ملی پتروشیمی: استفاده از فاینانس چینی مشروط است, پتروشیمی مسجدسلیمان به بهره‌برداری رسید 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

Masjed Soleyman Petrochemical Industries Co. (MISPI)

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