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Overview

China CITIC Bank participates in syndicated seller’s credit for Dabin Cement Plant Construction Project (Linked to Record ID#102626)

Commitments (Constant USD, 2023)$52,500,000
Commitment Year•2023Country of Activity•IraqDirect Recipient Country of Incorporation•IraqSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 13, 2023
Start (actual)
Apr 4, 2023
End (planned)
Apr 4, 2025

Geospatial footprint

Map overview

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This project constructed a new 6,000-ton-per-day (Dabin) cement clinker production line and a 52-megawatt heavy fuel oil power plant in the city of Erbil. The project site is located on a 43-hectare area at the foot of Safin Mountain. More detailed locational information can be found at https://www.openstreetmap.org/node/2486441005.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • China CITIC Bank Corporation Limited

Cofinancing agencies

Private Sector

  • China Zheshang Bank (CZB or CZBank)
  • National Bank of Kuwait S.A.K. (NBK)

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • DCCP Dabin Company

Implementing agencies

State-owned companies

  • Sinohydro Corporation Limited

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

China Construction Bank and China CITIC Bank participate in syndicated seller’s credit for Dabin Cement Plant Construction Project in Iraq 2023

Interest type•Unknown

Narrative

Full Description

Project narrative

On February 13, 2023, DCCP Dabin Company — a special purpose vehicle and joint venture of Dabin Group and PowerChina — signed a syndicated seller’s credit agreement with the Beijing Branch of China Construction Bank, the Beijing Branch of China Zheshang Bank Co., Ltd., the Beijing Branch of China CITIC Bank Co., Ltd., and the Shanghai Branch of National Bank of Kuwait S.A.K.P. for the Dabin Cement Plant Construction Project. The borrowing terms of the collateralized loan are unknown. However, it is known that the borrower purchased a credit insurance policy from Sinosure, which went into effect on October 13, 2022. The purpose of the $280 million project is to construct a new 6,000-ton-per-day (Dabin) cement clinker production line and a 52-megawatt heavy fuel oil power plant in the city of Erbil. 1,000 job opportunities are expected to be created during the project’s construction phase. The project site is located on a 43-hectare area at the foot of Safin Mountain. PowerChina is the EPC contractor responsible for project implementation. On March 8, 2023, the project owner officially issued a construction start order. Construction started on April 4, 2023 and was expected to reach completion within 24 months (April 4, 2025). Then, on June 22, 2023, a formal groundbreaking ceremony took place. Kurdistan Region Prime Minister Masrour Barzani attended and delivered remarks at the ceremony.

Staff comments

1. This project is also known as the DCCP Cement and Power Plant Project and the Iraq DCCP 6000TPD Cement Clinker Production Line and Power Plant Project. The Chinese project title is DCCP日产6000吨水泥熟料生产线及电厂项目 or 伊拉克DCCP日产6000吨水泥熟料生产线及电厂项目. 2. The insured amount under the Sinosure credit insurance policy was $295 million. 3. The precise face value of the seller’s credit is unknown. For the time being, AidData assumes that the face value of the seller’s credit was equivalent to 75% of the total project cost ($210 million). This issue warrants further investigation. 4. The individual financial contributions of the members of the syndicate are unknown. For the time being, AidData assumes equal contributions ($52,500,000) across the four known members of the syndicate. This issue warrants further investigation.