Completed Mixed AidData Chinese Aid

China Eximbank provides $1.105 billion loan for Phase 1 of Abadan Refinery Upgrade Project (Linked to Record ID#67618)

¥1.11M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Iran
Country	Iran
Start Date	Jan 01, 2016
End Date	Jan 17, 2031
Duration	5,495 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85280`

Grant Description

China Eximbank provides $1.105 billion loan for Phase 1 of Abadan Refinery Upgrade Project In 2016, Sinopec signed an EPC contract with National Iranian Oil Engineering and Construction Company worth approximately $1.3 billion (RMB 8 billion) for Phase 1 of the Abadan Refinery Upgrade Project. China Eximbank reportedly agreed to provide a loan to finance 85% of the cost ($1.105 billion ) of the EPC contract.

The loan was insured by China Export & Credit Insurance Corporation (Sinosure).

The Abadan refinery (Persian: پالایشگاه آبادان‎) is an oil refinery located in the city of Abadan near the coast of the Persian Gulf. Phase 1 was completed, but its specific focus and its implementation start and end dates are unknown. China Eximbank also financed Phase 2 of the Abadan Refinery Upgrade Project (see Record ID#67618).

📋 Staff Comments

The Chinese project title is 伊朗Abadan炼厂产品升级项目 or Abadan煉廠產品升級項目一期.
The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
Sinopec reports that its ‘share’ of the EPC contact was worth approximately RMB 4.081 billion, which suggests that the EPC contract was issued to a consortium.
Given that China Eximbank agreed to provide a loan to finance 85% of the cost of the EPC contract, AidData assumes that the loan was issued in the form of a buyer's credit. This issue warrants further investigation.

📚 Sources & References

بزرگترین سرمایه‌گذاری پسابرجامی در پالایشگاه آبادان, چینی_ها بزرگترین پالایشگاه نفت ایران را می_سازند - خبرگزاری مهر _ اخبار ایران و جهان _ Mehr News Agency
Sinopec Persists With Iran Refinery Upgrade
自願性公告 - 新合同總值及未完成合同量
China's Sinosure Opens $1.3b Credit Line for Iranian Refinery
These Billions in Deals Can Help Iran Counter Trump
Iran
China Working to Remove Banking Hurdles _ Financial Tribune
Official Says Chinese Finance Suitable for Petrochem Projects _ Financial Tribune, 12 میلیارد دلار فاینانس‌های برجامی در مرحله نهایی جذب
China opens 1st post-JCPOA LoC to Iran
China Opens $1.3bln Credit Line to Finance Iran's Energy Projects
Iran
China sign big oil deal: NIORDC
China to Finance Renovation of Iran’s Old Refinery - Economy news - Tasnim News Agency
Iran govt. gets clearance for $5 billion Russian loan - Pars Today, اخبار - جاسک هاب نفتی منطقه می شود, وبگاه شرکت پالایش نفت آبادان _
China's Overseas Development Finance
China-Germany Co-Innovation Platform 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.