Completed Mixed AidData Chinese Aid

Chinese Government provides $1.02 billion buyer’s credit loan for Second Phase of SALCO Aluminum Smelter Construction Project (Linked to Record ID#85268)

¥1.02M RMB

Funder	China Development Bank (CDB)
Recipient Organization	China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC)
Country	Iran
Start Date	Jan 01, 2015
End Date	Jul 05, 2033
Duration	6,760 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85267`

Grant Description

Chinese Government provides $1.02 billion buyer’s credit loan for Second Phase of SALCO Aluminum Smelter Construction Project In March 2012, South Aluminum Corporation (SALCO or شرکت آلومینیوم جنوب) — a joint venture between the Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO), an Iranian state-owned enterprise, and Ghadir Investment Company, a military-affiliated Iranian conglomerate — signed an EPC plus Financing (EPC+F) contract with China Nonferrous Metal Industry’s Foreign Engineering & Construction Company (NFC).

In January 2015, NFC secured a buyer’s credit loan from an unidentified Chinese Government institution (most likely China Development Bank) to finance 85% ($1.02 billion) of the cost of the $1.2 billion (RMB 7.179 billion) general EPC contract, which was signed February 28, 2011. The borrower purchased buyer's credit insurance from Sinosure.

The purpose of this project was to construct an aluminum smelter in the Lamerd Special Economic Zone within the southern province of Fars. Construction began on December 24, 2015 and the smelter was officially inaugurated on April 3, 2020.

China Eximbank also provided a loan for the construction of a 913MW Lamard Combined Cycle Power Plant to power the aluminum smelter that is run by SALCO (captured via Record ID#85268).

📋 Staff Comments

The Chinese project title is 伊朗南方铝业公司电解铝项目 or 简称“伊朗南方铝项目. The Persian project title is مجتمع صنایع آلومینیوم جنوب.
The SALCO website makes several references to conversations and negotiations with China Development Bank (CDB). However, AidData has not yet identified clear-cut, official evidence that it is the financier. This issue warrants further investigation.
Under the EPC+F arrangement through which this project was financed, it appears that CDB extended a loan to the EPC contractor (NFC) but with a sovereign guarantee from the Iranian Government. However, this issue warrants further investigation.

📚 Sources & References

CDB Financing for Phase 1 of the SALCO Project (Farsi)
Phase 1 of Salco aluminum plant
Iran’s Biggest Aluminum Project Comes on Stream _ Financial Tribune
伊朗南方铝业地基检测项目-河北双诚建筑工程检测有限公司
中色股份“一带一路”实践案例分析与风险防控策略, 2011.2 与伊朗南方铝业公司在伊朗签署了电解铝项目EPC总承包合同。_中色股份
中色奥博特铜铝业有限公司
张克利总经理会见伊朗南方铝董事长图尔坎, _قدردانی از نقش بانک صادرات ایران در راه_اندازی بزرگترین مجتمع آلومینیوم کشور
中国水电建设集团国际工程有限公司厄瓜多尔CCS水电站项目营地
Magiran _ روزنامه دنیای اقتصاد (1398_10_10)_ در گفت و گو با مدیر عامل شرکت آلومینیوم جنوب بررسی شد _ «سالکو» از طرح مطالعاتی تا بهره برداری
Tehran Times DECEMBER 25, 2016
Islamic Republic of Iran - Ministry of Energy - Master Plan for Developing Environmental Friendly Technologies in Iranian Power Sector Final Report November 2019 Japan International Cooperation Agency (JICA) Tokyo Electric Power Services Co.
Ltd. IL JR 19-077 I
伊朗南方铝业与中色股份签71.79亿元工程合同_全球铝业网_新浪博客
中色股份与伊朗南方铝业签71亿元工程合同_工业品资讯_新浪财经_新浪网
South Aluminium Corporation smelter finally inaugurated
South Aluminum Smelter (SALCO)
China Financing $5B in Iran Mine and Mining Industries Sector
Iran Poised for Significant Jump in Aluminum Output
CDB Financing for Phase 1 of the SALCO Project
New Smelter to Increase Aluminum Output by 70%
China financing $5B of projects' cost in Iran’s mining sector
President Rouhani Opens Iran's Largest Aluminum Plant
Southern Aluminum
Chinese start construction of country's larger aluminum factory soon
EPC Trading Contract
Commissioning of Phase 1 of the Aluminum Smelter of Iran
South Aluminum Project SALCO
中色股份伊朗南方电解铝厂项目荣获“中国海外工程优秀营地”称号
中色股份伊朗南方铝项目发来表扬信
中色伊朗南方铝项目码头区电缆桥架招标公告
奥赛多与“一带一路” - 伊朗南方铝项目
科达东大备战伊朗南方铝业公司（SALCO）电解铝厂项目
SOUTHERN ALUMINUM INDUSTRIES COMPLEX, شرکت مجتمع صنایع آلومینیوم جنوب
EPC Trading Contract - South Aluminum Corporation 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

China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC)

Interested in applying for this grant?

Complete our application form to express your interest and we'll guide you through the process.

Apply for This Grant