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Overview

China Eximbank provides $326 million buyer’s credit loan for 448MW Zanjan 1 Gas-fired Combined Cycle Power Plant Project

Commitments (Constant USD, 2023)$346,905,200
Commitment Year•2017Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2017
Start (actual)
Aug 25, 2016
End (planned)
Aug 25, 2020

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project is to construct a 448MW combined cycle power plant near the village of Chovrovk at the 75 km along the Zanjan-Tabriz highway. More detailed locational information can be found at https://www.openstreetmap.org/way/410679799.

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

Private Sector

  • Power Control Engineering Company

Implementing agencies

State-owned companies

  • China National Electric Engineering Co., Ltd. (CNEEC)
  • Sinohydro Corporation Limited

Guarantors

Government Agencies

  • Government of Iran

Loan description

China Eximbank provides $326 million buyer’s credit loan for 448MW Zanjan 1 Gas-fired Combined Cycle Power Plant Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2017, China Eximbank issued a $326 million buyer’s credit loan agreement to Power Control Engineering Company for the 448MW Zanjan 1 Gas-fired Combined Cycle Power Plant Project. A sovereign guarantee was provided for this loan. The proceeds of the loan were used to be used by the borrower to partially financed an EPC contract with China National Electric Engineering Co (CNEEC), which was officially signed on August 28, 2015. The purpose of the project is to construct a 448MW combined cycle power plant near the village of Chovrovk at the 75 km along the Zanjan-Tabriz highway. The construction of the plant is being implemented on a Build-Own-Operate (BOO) basis. CNEEC is the EPC contractor responsible for implementation. PowerChina also seems to be involved (most likely as a subcontractor). Construction began on August 25, 2016 and the project duration was estimated to be 48 months. But it is unclear whether/when this project was completed.

Staff comments

1. This project is also known as the Soltanieh Combined Cycle Power Plant Construction Project. The Chinese project title is 伊朗赞詹项目 or 赞詹燃机联合循环电厂项目. The Persian project title is نیروگاه سیکل ترکیبی زنجان or نيروگاه 484 مگاواتي زنجان. 2. It appears that this project is being financed through an EPC plus Financing (EPC+F) contract with CNEEC. Therefore, China Eximbank most likely extended a loan to the EPC contractor (CNEEC) but with a sovereign guarantee from the Iranian Government. This issue merits further investigation. 3. The loan commitment year is uncertain. For the time being, AidData treats 2017 as the loan commitment year because it is the year when Iran’s Ministry of Economy disclosed the existence of the loan. 4. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.