China Construction Bank refinances loan for Taleghan Dam and Power Plant Construction Project (Linked to Record ID#65792)

Project narrative

In 2001, China Eximbank and the Regional Water Company of Tehran — an Iranian state-owned enterprise — signed a $121.55 million buyer’s credit loan agreement for the Taleghan Dam and Power Plant Construction Project (as captured via Record ID#65792). Then, on June 29, 2007, Sinohydro Group Ltd. and China Construction Bank signed a debt refinancing agreement for the Taleghan Dam and Power Plant Construction Project. The proceeds of the loan were used to finance 85% of the cost of a $143 million commercial contract with Sinohydro Group Ltd., which was signed on January 12, 2001. However, Sinohydro Group Ltd. later identified the total cost of this project as $165 million rather than $143 million, which suggests that there may have been unforeseen cost increases during implementation. China Construction Bank (CCB) apparently issued a supplemental loan to Sinohydro Group Ltd. as part of an EPC+Financing (EPC+F) arrangement. However, the face value, commitment year, and borrowing terms of the CCB loan are unknown.