ICBC pledges $1.079 billion loan for Mehran Petrochemical Project
Pledged amount
$ 1274088064.518786
Adjusted pledged amount
$ 1274088064.518786
Constant 2021 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Summary
Funding agency [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Recipient
Iran
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
Yes
Category
Project lifecycle
Description
In 2016, the Industrial and Commercial Bank of China (ICBC) signed a letter of intent to finance a joint venture project with Iran's Petrosaman Faragostar (also known as Petro Saman Zagros Company or PSZ) to develop a petrochemical complex in the city of Mehran. An estimated $1.27 billion is needed for the development of the project. ICBC agreed in principle to finance 85% of the total project cost, with Petrosaman Faragostar covering the remaining 15%. On April 19, 2016, China National Technical Import and Export Corporation (CNTIC) and Petrosaman Faragostar signed an agreement related to this project (confirmed to be a deal for construction/construction agreement). The purpose of the project is to set up a natural-gas-to-polypropylene conversion process at the petrochemical complex and it is expected to take 40 months to complete. National Petrochemical Company (NPC), a subsidiary of Iranian Petroleum Ministry, is also expected to be involved in project implementation.
Number of official sources
1
Number of total sources
9
Details
Cofinanced
Yes
Direct receiving agencies [Type]
Petro Saman Zagros [Private Sector]
Implementing agencies [Type]
China National Technical Import and Export Corporation (CNTIC) [State-owned Company]
Petro Saman Zagros [Private Sector]