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Overview

Chinese Government provides a loan for the 400 MW Khersan-3 Dam and Hydropower Plant Project

Commitments (Constant USD, 2023)$38,670,526
Commitment Year•2013Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2013
Start (actual)
Apr 3, 2013
End (planned)
Apr 1, 2018
End (actual)
Sep 5, 2019

Geospatial footprint

Map overview

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The purpose of this project was to construct a dam located approximately 45 km southeast of the city of Lordegan, in Chahar Mahal and Bakhtiary province, upstream from the Karun-IV Dam. The locational coordinates of the dam are 31°14′52.51″N 50°58′34.79″E. More detailed locational information can be found at https://geohack.toolforge.org/geohack.php?pagename=Khersan-3_Dam&params=31_14_52.51_N_50_58_34.79_E_type:landmark and https://www.openstreetmap.org/way/633498327#map=16/31.2456/50.9829

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • Iran Water and Power Resource Development Co (IWPC)

Implementing agencies

Private Sector

  • Parhoon Tarh

State-owned companies

  • China CAMC Engineering Co., Ltd. (CAMCE)
  • Iran Water and Power Resource Development Co (IWPC)
  • Jihad Water Resources Development Company
  • SUMEC Group Corporation (SUMEC)
  • Tana Energy Group

Loan desecription

Chinese Government provides a loan for the 400 MW Khersan-3 Dam and Hydropower Plant Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2013, an unspecified Chinese Government institution extended a loan — through a line of credit — to Iran for the 400 MW Khersan-3 Dam and Hydropower Plant Project. The borrowing terms and face value of the loan are unknown. It is known that the total cost of the commercial contract for the 400 MW Khersan-3 Dam and Hydropower Plant Project was $44 million. The proceeds of the loan were used to finance the commercial contract that Iran Water and Power Resources Development Company (IWPCO) — an Iranian state-owned enterprise — signed with a consortium consisting of Iranian companies Tana Energy, Jihad Water Resources Development Co., Parhoon Tarh, and Chinese state-owned firms China CAMC Engineering Co., Ltd. and SUMEC Group Corporation (SUMEC). The purpose of this project was to construct a dam located approximately 45 kilometers southeast of the city of Lordegan, in Chahar Mahal and Bakhtiary province, upstream from the Karun-IV Dam. Construction began on April 3, 2013, with a 60-month (5 year) contract period. The dam was ultimately completed on September 5, 2019.

Staff comments

1. The Persian project title is نیروگاه، آبگیر و تونل های آب بر خرسان 3 or 3 سد و نیروگاه خرسان. 2. In 2017, a Vice President of the Export-Import of China reported that it had financed 26 electricity, petrochemical, oil and gas and nonferrous metal projects in Iran worth $9 billion USD (see "China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran"). Therefore, China Eximbank is most likely the funder of this project. However, the source of project financing merits further investigation. 3. The face value of the loan is unknown. For the time being, AidData assumes that the loan was provided in the form of a buyer's credit and it financed 85% of the $44 million commercial (EPC) contract cost. This issue warrants further investigation.