Project ID: 41289

China Eximbank provides $70 million loan for Hamadan Cement Factory Construction Project

Commitment amount

$ 151916334.47299042

Adjusted commitment amount

$ 151916334.47

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Iran

Sector

Industry, mining, construction (Code: 320)

Flow type

Loan

Level of public liability

Unallocable

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Pipeline: Commitment (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2005-01-01

Geography

Description

In 2005, China National Electric Equipment Corporation (CNEEC) signed a commercial contract to construct a cement factory in Hamadan ( استان همدان‎) Province. It was reported that the plant would be totally financed by the CNEEC, and the financing was secured by a $70 million loan from China Eximbank. The loan carried an interest rate of 2.5% and a maturity of 15 years. Of the $70 million, $33 million was to be allocated for the acquisition of machinery and $25 million was to be allocated for the construction of factory facilities. The remainder was set aside for miscellaneous equipment and mining machinery. The project was expected to take 30 months to complete and result in 5,400 jobs. Upon completion, the cement factory was expected to be run as a joint venture (with 40% Chinese ownership and 60% Iranian ownership). This cement plant is now functional; however, it is unclear if the project was ultimately implemented with support from China Eximbank.

Additional details

1. A BBC Monitoring source identifies the face value of the loan as $7 million, but this appears to be a typo. AidData records the face value of the loan as $70 million.

Number of official sources

0

Number of total sources

6

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Details

Cofinanced

No

Direct receiving agencies [Type]

China National Electric Engineering Co., Ltd. (CNEEC) [State-owned Company]

Implementing agencies [Type]

China National Electric Engineering Co., Ltd. (CNEEC) [State-owned Company]

Loan Details

Maturity

15 years

Interest rate

2.5%

Grant element (OECD Grant-Equiv)

34.5951%

Bilateral loan

Investment project loan