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Chinese Government provides $375 million loan for Gachsaran Petrochemical Plant Construction Project (Linked to Record ID#41429)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Gachsaran Petrochemical Company |
| Country | Iran |
| Start Date | Jan 01, 2014 |
| End Date | Mar 16, 2026 |
| Duration | 4,457 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 85279 |
Grant Description
Chinese Government provides $375 million loan for Gachsaran Petrochemical Plant Construction Project In 2014, the Chinese Government issued a $375 million loan for the Gachsaran Petrochemical Plant Construction 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 with an unidentified firm.
The purpose of this project was to construct a petrochemical plant — with the capacity to produce 5,000 tons of formic acid and 500 tonnes of vinyl acetate — on a 57 hectare site within Gachsaran County and Kohgiluyeh and Boyer-Ahmad Province. Upon completion, the project is expected to generate 432 jobs.
A formal groundbreaking ceremony took place on or around August 18, 2016. As of March 2017, the project had achieved a 32.6% completion rate. It was scheduled for completion in 2020. However, AidData has not identified any evidence that this project has reached completion.
Staff Comments
- The Persian project title is شرکت پتروشيمي گچساران. The borrower of the loan that supported this project is unknown, but it may have been Gachsaran Petrochemical Company. 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
- طرح الفين گچساران (الفين هشتم) پورتال شرکت ملی صنایع پتروشیمی, شرکت پایانه ها و مخازن پتروشیمی _ با مشاركت مالي چيني ها - شرکت پایانه ها و مخازن پتروشیمی
- Iran plans to develop petrochemical sector - Xinhua _ English.news.cn
- Iran starts construction of $1bn petrochem plant - PETROCHEMICALS - Refining & Petrochemicals Middle East
- China Finances Iran Petchem Plants
- 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 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
Gachsaran Petrochemical Company
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