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

Project narrative

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.