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Overview

Bank of China provides $4.8 million buyer’s credit loan for Farsnov Cement Plant Construction Project

Commitments (Constant USD, 2023)$9,625,125
Commitment Year•2005Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2005
End (actual)
Apr 24, 2006
Last repayment (originally scheduled)
Dec 31, 2009

Geospatial footprint

Map overview

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The purpose of the project was to construct a cement plant for Farsnov Cement Co., Ltd (شركت سیمان فارس نو ) that is located 80 km south of the city of Shiraz. More detailed locational information can be found at https://www.openstreetmap.org/way/131629765.

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

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Farsnov Cement Company

Implementing agencies

State-owned companies

  • Chengdu Design and Research Institute of Building Materials Industry Co. Ltd. (CDI)

Loan description

Bank of China provides $4.8 million buyer’s credit loan for Farsnov Cement Plant Construction Project

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

Bank of China issued a buyer’s credit loan worth $4,802,164.47 for the Farsnov Cement Plant Construction Project in Iran. This loan carried a 5 year maturity, but its interest rate and grace period are unknown. The proceeds of the loan were used to finance a commercial contract with Sinoma Chengdu Design and Research Institute of Building Material Industry (CDI). The purpose of the project was to construct a cement plant for Farsnov Cement Co., Ltd (شركت سیمان فارس نو ) — capable of producing 3,000 tons of cement per day — that is located 80 km south of the city of Shiraz in Fars Province. CDI was the contractor responsible for project implementation. The cement plant was completed and put into production on or around April 24, 2006.

Staff comments

1. This project is also known as the FARS NOV Cement Plant Project. The Chinese project title is 伊朗FARS NOV水泥厂项目. The Persian project title is کارخانه سیمان فارس. 2. The borrower of the loan may have been Farsnov Cement Co., Ltd, but this issue requires further investigation. 3. The loan commitment year is uncertain. It is currently set to 2005 because that is the year when Bank of China disclosed the loan.