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Overview

Hakan Energy Company provides EUR 2.5 billion oil-backed loan for Phase 2 of Imam Khomeini International Airport Expansion Project

Commitments (Constant USD, 2023)$2,703,171,569
Commitment Year2023Country of ActivityIranDirect Recipient Country of IncorporationIranSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2023
Start (actual)
Nov 25, 2023

Geospatial footprint

Map overview

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The purpose of Phase 2 is the construction of a new (second) terminal in Tehran's Imam Khomeini International Airport (IKA). The project is expected to be undertaken across 410,000 hectares of land located to the south of the airport. More detailed locational information can be found at https://www.openstreetmap.org/way/100312049.

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 ownership

Funding agencies

State-owned companies

  • Hakan Energy Company («هاکان انرژی»)

Receiving agencies

Government Agencies

  • Government of Iran

Implementing agencies

State-owned companies

  • Hakan Energy Company («هاکان انرژی»)
  • Khatam Al Anbia Construction

Loan desecription

Hakan Energy Company provides EUR 2.5 billion oil-backed loan for Phase 2 of Imam Khomeini International Airport Expansion Project

Interest typeUnknown

Collateral

Future oil export receipts.

Narrative

Full Description

Project narrative

In March 2021, the Chinese Government and the Government of Iran signed a $400 billion, 25-year strategic partnership agreement, which called for the implementation of Phase 2 of the Imam Khomeini International Airport Expansion Project. Then, in early November 2023, Hakan Energy Company («هاکان انرژی») — a consortium of Chinese state-owned entities — signed an EUR 2.5 billion oil-for-infrastructure loan (EPCF) agreement for Phase 2 of the Imam Khomeini International Airport Expansion Project. The borrowing terms of the loan are unknown. However, it is known that the loan is collateralized against future oil export receipts. The purpose of Phase 2 is the construction of a new (second) terminal in Tehran's Imam Khomeini International Airport (IKA). The project is expected to be undertaken across 410,000 hectares of land located to the south of the airport. Hakan Energy Company (the EPC contractor) asked that a domestic (Iranian) contractor be selected to help implement the project on behalf of the project owner (Iran’s Ministry of Roads and Urban Development). Khatam al-Anbiya Construction Headquarters (KAA) — an Iranian engineering firm controlled by the Islamic Revolutionary Guard Corps (IRGC) — was ultimately selected. The project’s official groundbreaking ceremony took place on November 25, 2023. Then, in early December 2023, the CEO of Imam Khomeini Airport City Company disclosed that the first loan disbursement of EUR 500 million (for ‘stage 1’ of Phase 2) had been received. However, in 2024 and 2025, various media reports indicated that Hakan Energy Company was teetering on the brink of bankruptcy and had limited its involvement in the implementation of Phase 2 of the Imam Khomeini International Airport Expansion Project.

Staff comments

1. Imam Khomeini International Airport is operated by Imam Khomeini Airport City Company, a state-owned entity under Iran's Ministry of Roads and Urban Development. 2. Khatam al-Anbiya Construction Headquarters (KAA) is an Iranian engineering firm controlled by the Islamic Revolutionary Guard Corps. The firm, also known as GHORB, is the IRGC's major engineering arm and one of Iran's largest contractors in industrial and development projects. 3. One source (https://www.irna.ir/news/85302587/%D8%AA%D8%A7%D9%85%DB%8C%D9%86-%D8%A7%D8%B9%D8%AA%D8%A8%D8%A7%D8%B1-%DB%B5%DB%B0%DB%B0%D9%85%DB%8C%D9%84%DB%8C%D9%88%D9%86-%DB%8C%D9%88%D8%B1%D9%88%DB%8C%DB%8C-%D8%A8%D8%B1%D8%A7%DB%8C-%D8%A8%D9%87%D8%B1%D9%87-%D8%A8%D8%B1%D8%AF%D8%A7%D8%B1%DB%8C-%D8%A7%D8%B2-%D8%A8%D8%AE%D8%B4-%D8%A7%D9%88%D9%84-%D9%81%D8%A7%D8%B2) indicates that EUR 500 million was earmarked for the first stage of Phase 2. Another source (https://khatenergy.ir/oil-21023/) indicates that EUR 600 million was earmarked for the first stage of Phase 2. This discrepancy warrants further investigation. 4. The Farsi project title is توسعه فاز دوم فرودگاه امام خمینی.