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Overview

ICBC provides $180 million buyer’s credit loan for Phase 1 of Tehran-North Highway Construction Project (Linked to Record ID#41232)

Commitments (Constant USD, 2023)$438,765,990
Commitment Year•2005Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 7, 2005
Start (actual)
Feb 1, 2006
End (planned)
Aug 1, 2017
End (actual)
Feb 25, 2020
First repayment (originally scheduled)
Mar 7, 2007
Last repayment (originally scheduled)
Sep 3, 2013

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to construct a 32 km highway segment (known was Phase 1 and Section 1) that runs from an interchange with Azadegan Expressway and Hemmat Expressway in northwestern Tehran city (Municipality District 21) to Doab, Shahrestanak, Alborz Province. This segment is part of a larger 121 highway (known as Tehran-North Freeway, Freeway 3, or آزادراه تهران - شمال‎) that begins in Tehran and runs to Chalus on the Caspian Sea. More detailed locational information can be found at https://www.openstreetmap.org/relation/5821660.

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 Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

State-owned Banks

  • Tejarat Bank

Implementing agencies

Private Sector

  • Federal Aisa Shanghai Import & Export Co., Ltd.

State-owned companies

  • China Railway Tunnel Group
  • China Shanghai (Group) Corporation for Foreign Economic and Technological Cooperation (China SFECO Group)

Loan desecription

ICBC provides $180 million buyer’s credit loan for Phase 1 of Tehran-North Highway Construction Project

Grace period•1.6666 yearsGrant element•17.6461%Interest rate (t₀)•5.01%Interest type•Fixed Interest RateMaturity•8.1666 years

Narrative

Full Description

Project narrative

On July 7, 2005, the Industrial and Commercial Bank of China (ICBC) signed a $218,909,000 buyer’s credit loan agreement with Tejarat Bank of Iran for Phase 1 of the Tehran-North Highway Construction Project. This loan carried the following borrowing terms: a 8.1666-year maturity, a 1.6666-year grace period, and a 5.01% interest rate. The purpose of the project was to construct a 32 km highway segment (known as Phase 1 and Section 1) that runs from an interchange with Azadegan Expressway and Hemmat Expressway in northwestern Tehran city (Municipality District 21) to Doab, Shahrestanak, Alborz Province. This segment is part of a larger 121 highway (known as Tehran-North Freeway, Freeway 3, or آزادراه تهران - شمال‎) that begins in Tehran and runs to Chalus on the Caspian Sea. A consortium made up of China Railway Tunnel Group, China Shanghai (Group) Corporation for Foreign Economic & Technological Cooperation, and Federal Aisa Shanghai Import & Export Co., Ltd. was responsible for implementation. Construction began in February 2006. The project had achieved an 83% completion rate as of May 3, 2017 and was originally scheduled for completion in August 2017. However, it encountered multiple delays, and its expected completion date was eventually pushed back to February 2020. Section 1 ultimately opened for test service on February 12, 2020 and it officially opened on February 25, 2020.

Staff comments

1. This project is also known as Section 1 of the Tehran-North Highway Construction Project, Phase 1 of Tehran North Highway Construction Project, Tehran-Shomal Freeway, and the Iran-Shomal Highway Project. The Chinese project title is 德黑兰北部高速公路. 2. The face value of the loan is recorded by different sources as $180 million, $200 million, and $220 million. AidData relies on the face value and borrowing terms that are recorded in the World Bank's Debtor Reporting System (DRS). See World Bank's Debtor Reporting System (DRS), See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 3. On September 22, 2015, China Communications Construction Company, Ltd. (CCCC) signed a memorandum of understanding (MoU) worth $2 billion with Tehran-North Freeway Company for the construction of Part 2 and 3 of the Tehran-North Highway (see Record ID#41232).