Bigger Share in Chinese-Funded Projects

Bigger Share in Chinese-Funded Projects
Bigger Share in Chinese-Funded Projects

Negotiations are being held to increase the share of Iranian manufacturers in petrochemical projects that are funded through Chinese credits, deputy oil minister announced Sunday.

The Chinese share is currently 50 percent, and the remaining half shall be undertaken by Iranian experts, Tasnim news agency quoted Abbas Shari-Moqaddam as saying. The official denied reports that Chinese manufacturers will own 80 percent of the projects they fund.

Iran and China reached an agreement in October, based on which the latter will supply 50 percent of equipment for joint petrochemical projects.

"However, we are negotiating to increase our share to 60 percent, or more," the official said, pointing to the Chinese credit, estimated at $2 billion, opened recently for five petrochemical projects.

Masjed Soleiman, Lordegan, and Gachsaran petrochemical complexes, Sabalan methanol unit, and Bushehr project are planned to be funded through the Chinese LOC. Some 67 petrochemical projects with the capacity to yield 60 million tons are yet to be completed. China will fund around 30 percent of such projects, should the two countries reach a final agreement.

According to Iranian officials, a total of $80 billion investments are needed for the development of the key petrochemical industry sector, part of which will come from Chinese finance and the National Development Fund of Iran (NDFI).