Chinese Government provides $375 million loan for Gachsaran Petrochemical Plant Construction Project (Linked to Project ID#41429)
Commitment amount
$ 415160711.77818316
Adjusted commitment amount
$ 415160711.78
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Iran
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
In 2014, the Chinese Government issued a $375 million loan for the Gachsaran Petrochemical Plant Construction Project. The loan that supported this project was likely drawn from the line of credit captured in Project ID#41429. The loan proceeds were to be used by the borrower to finance an EPC contract with an unidentified firm. The purpose of this project was to construct a petrochemical plant — with the capacity to produce 5,000 tons of formic acid and 500 tonnes of vinyl acetate — on a 57 hectare site within Gachsaran County and Kohgiluyeh and Boyer-Ahmad Province. Upon completion, the project is expected to generate 432 jobs. A formal groundbreaking ceremony took place on or around August 18, 2016. As of March 2017, the project had achieved a 32.6% completion rate. It was scheduled for completion in 2020. However, AidData has not identified any evidence that this project has reached completion.
Additional details
1. The Persian project title is شرکت پتروشيمي گچساران. The borrower of the loan that supported this project is unknown, but it may have been Gachsaran Petrochemical Company. This issue merits further investigation. 2. The financier of this project is unknown. However, around the time that this project was financed, China reportedly owed Iran over $20 billion in oil payments. This funding was frozen in overseas banks after US-led sanctions made it difficult for Beijing to transfer money to Tehran. Iran and China reportedly reached a deal to settle some parts of the frozen money through China’s funding of Iranian petrochemical projects. Also, in 2017, a Vice President of China Eximbank reported (see "China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran") that it had financed 26 electricity, petrochemical, oil and gas and nonferrous metal projects in Iran worth $9 billion. Therefore, China Eximbank is the most likely funder of this project.
Number of official sources
1
Number of total sources
8
Details
Cofinanced
No
Direct receiving agencies [Type]
Gachsaran Petrochemical Company [Private Sector]