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Overview

Chinese Government provides RMB 1.7 billion loan for Phase II of the Main Irrigation and Drainage Network of the Khuzestan Province (Linked to Record ID#66924)

Commitments (Constant USD, 2023)$256,968,221
Commitment Year•2019Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•Water Supply And SanitationFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2019
End (planned)
Dec 31, 2023

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

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Government Agencies

  • Government of Iran

Implementing agencies

State-owned companies

  • Jahad Nasr Institute
  • Khuzestan Water & Power Authority

Loan desecription

Chinese Government provides RMB 1.7 billion loan for Phase II of the Main Irrigation and Drainage Network of the Khuzestan Province (Linked to Record ID#66924)

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2019, the Chinese Government was expected to provide an RMB 1.7 billion term loan for Phase II of the Main Irrigation And Drainage Network of the Khuzestan Province. The borrowing terms are unknown. The purpose of this loan is to cover 85% of the total project cost equal to RMB 4 billion. The Iran Ministry of Energy would finance the remaining 15%. The financing is expected to be "completed" in 2020 so it is unclear if Chinese financing was actually secured for Phase II of this project. This phase will help rehabilitate 550,000 hectares of land in Khuzestan. The project is expected to create 300,000 new jobs and give farmers 16,000 billion tomans in income. So far 255,000 hectares have been completed and the 255,000 hectares and the underground drainage at the level of 197,000 hectares are being implemented and is expected to be completed by 2023. The Jahad Nasr institute, a subsidiary of the Iran Ministry of Agriculture, was studying the project and is an implementing agency.

Staff comments

1. The project is certainly being studied by the Jahad Nasr Institute (" اقدامات فاز دوم طرح احیای ۵۵۰ هزار هکتار اراضی کشاورزی خوزستان و ایلام, source ID#155570) and they have received credit from the Iranian government to continue studying the project. However, it is not clear that they have actually received Chinese funding. 2. The Jahad Nasr institute is sometimes spelled "Jihad" in translation but their own website's URL is "Jahad", so that is the spelling that was used. 3. "Phase two of Khuzestan Plain Rehabilitation Project" is called "فاز دو طرح احیای دشت خوزستان هزار" in Farsi. The general "Khuzestan Plain Rehabilitation Project" is called "طرح احیای دشت خوزستان هزار" in Farsi. It is also known as "the Supreme Leader's Plan" or "طرح مقام معظم رهبری" in Farsi.