CHEC signs EPC+F agreement with Kish Investment Tirajeh for Tirajeh Urban Complex Project

On March 9, 2014, China Harbour Engineering Company Ltd (CHEC) and Kish Investment Tirajeh — a municipal subsidiary of Tablis in Iran — signed an Engineering, Procurement, Construction and Financing (EPC+F) contract worth EUR 118 million for the Tirajeh Urban Complex Project (as part of a larger financing agreement between the Chinese Government and the Iranian Government). The purpose of the project, which is located in Ardabil Province, was to build Tirajeh urban complex in a 99,000m2 area. The complex was to consist of commercial real estate, leisure and entertainment facilities and shopping and dinning facilities. AidData has not identified any evidence that this project was ultimately implemented by CHEC.

Additional details

1. The Chinese project title is Tirajeh城市综合体项目. The Farsi project title is مرکز تجاری،تفریحی،فرهنگی و گردشگری تیراژه اردبیل. 2. The identity of the financier is not known. For the time being, AidData has coded the identity of the financier as an Unspecified Chinese Government Institution. However, this issue requires further investigation. 3. Under most EPC+F contractual arrangements, a loan is extended to the EPC contractor but with a sovereign guarantee from the host government. Therefore, AidData assumes that the loan issued to CHEC is backed by a repayment guarantee from the Government of Iran (i.e. a sovereign guarantee). 4. AidData has estimated the face value of the loan by taking 85% of the value of the EUR 118 million EPC+F contract.

Number of official sources

5

Number of total sources

7