China finances Iran’s petrochemical industry

TEHRAN, Sep. 10 (MNA) – Oil Ministry International Affairs deputy has said China agreed to finance Iran’s new petrochemical projects up to $4 to 4.5bn.

Ali Majedi who was speaking to Mehr News about Iran and China new agreement where the Chinese will finance Iran’s petrochemical projects, said that “the agreement covers 12 new projects; and the formal arrangements for financing 8 other projects have been coordinated.”

“Some other projects would be financed by Russian resources,” Mr. Majedi added.

On Tuesday, Ishaq Jahangiri, president’s first deputy told reporters that during the upcoming third meeting between Iran and China presidents on the sidelines of Shanghai Summit, “we will secure billions of dollars from China for private sector projects which top agenda.”

In his interview to Mehr News, Mohammad Hassan Peivandi, NIOC deputy-director said that the Chinese finance of the petrochemical project was being finalized in Iran’s Central Bank.

“We need a number of notes of understanding between the Central Bank and China, where it would take into account the Bank’s conditions,” he added.

Abbas She’ri, managing director of the National Petrochemical Company (NPC), a subsidiary to the Iranian Petroleum Ministry, has recently announced that petrochemical industry demanded $13bn of Chinese investments as finance for Sabalan, Bushehr, Masjed-e-Soleiman and Lordegan complexes, which have been realized.

He also emphasized that “some issues, however, rose in securing Chinese finance such as approving repayment safeguards and code of good practice by the Central Bank, which is still to be addressed.”

Mehr News has been informed that following opening of Chinese finance for the project underway in Lordegan petrochemical complex worth of $610mn, 4 other new projects entered operation in last May. In June, Chinese finance helped Sabalan and Sadaf complexes start operation.

Rouhani’s government has projected rises in Iran’s petrochemical products to 100 million tons worth $40bn annually.

In line with this projection, Namdar Zanganeh had criticized the slow pace of development in petrochemical industry in past few years, promising second leap forward in Rouhani’s present cabinet.

By Mehr News Agency

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