Completed Mixed AidData Chinese Aid

Chinese Government provides RMB 2.518 billion loan for Sabalan Methanol Unit Construction Project (Linked to Record ID#41429)

¥2.52M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Sabalan Petrochemical Industries Company (SPICO)
Country	Iran
Start Date	Feb 01, 2014
End Date	Jul 10, 2028
Duration	5,273 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67640`

Grant Description

Chinese Government provides RMB 2.518 billion loan for Sabalan Methanol Unit Construction Project In February 2014, the Chinese Government provided an RMB 2.518 billion loan to Sabalan Petrochemical Industries Company — a partially state-owned Iranian company — for the Sabalan Methanol Unit Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the loan was backed by a Sinosure credit insurance policy. The loan that supported this project was likely drawn from the line of credit captured in Record ID#41429.

The purpose of this project was to construct a methanol production plant with a capacity of 5000 metric tons per day located in the Pars Special Economic Energy Zone (PSEEZ) within the port city of Assaluyeh in Bushehr Province.

Upon completion, it was envisaged that the plant would produce 1.65 million tons of methanol per year and create 350 direct and 1,200 indirect jobs.

Petrochemical Industries Design and Engineering Company (PIDEC) — an Iranian state-owned enterprise — is the EPC contractor responsible for implementation. Construction began in June 2014 and the project had achieved a 51% completion rate as of February 2017. By December 2019, the project had achieved an 80% completion rate.

The project was ultimately completed in April 2021.

📋 Staff Comments

The Persian project title is پتروشیمی سبلان. Sabalan Petrochemical Industries Company is a subsidiary of Sepehr Energy Corporation, which is partially owned by Bank Saderat (which is itself 30% owned by the Government of Iran).
The financier of this project is unknown. However, around the time that the 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 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
China to Resume Petrochem Activity in Iran
Parliament Speaker: Iran's Energy Sector Ready for China's Investment
First Chinese LOC for Petrochem Project, فاینانس چینی پتروشیمی_های ایران _ اقتصاد آنلاین
Methanol Plant in Bushehr Near Completion _ Financial Tribune
Iran_ Petrochemical Plant Will Help Complete Methanol Value Chain _ Eghtesad Online
KAYSON INC, خط جدید اعتباری چینی ها در صنعت پتروشیمی ایران بازگشایی شد, توسعه صنعت پتروشیمی در دست چینی ها - روزنامه جهان صنعت
National Petrochemical Company
Fake privatization - The Jerusalem Post, پورتال سازمانی شرکت پتروشیمی سبلان, تأمین اعتبار 2 طرح پتروشیمی توسط چینی ها - عیارآنلاین
China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran
China Finances Iran Petchem Plants
China to Finance Petrochemical Projects in Iran: Official
China’s EXIM bank to fund Iran projects
China Opens $2b Credit for Petrochem Projects 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

Sabalan Petrochemical Industries Company (SPICO)

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