BSCH Puts $128.5m into Iran’s NPC

NPC Board Member, M. Hadi Rahbari, Iranian ambassador to Spain Morteza Alviri, and the official from BSCH signed a contract to put $128.5 million into a project to be operated by the Iranian Sazeh Co. and Spanish Intecsa Udeh consortium.

Rahbari said to IRNA after the signing ceremony that it is the first time that a Spanish Bank accepts not to use the government guarantee on behalf of an Iranian company, which shows NPC’s credibility a successful Iranian company in the world.

“Close diplomatic relations between the two countries and Spain’s supports helped NPC to be awarded this credit,” the official said.

On June 17, 2000, a delegation from NPC paid a three-day visit to Spain to discuss avenue of boosting mutual relations with officials and some banks including BSCH.

The recently signed contract is part of the Spanish bank’s pledge, which assured the NPC delegation of their support for investing in Iran's petrochemicals sector.

Banco Santander Central Hispano is one of the world's 20 largest banks.

“A total of $137 million has been allocated for the operation of part of a huge project called Olefin 9,” Rahbari said, adding that the project is to be financed through $128.5 million credit line by BSCH bank while Iran is account for the rest.

In 2000, NPC is resolute to produce five million tons of ethylene per year by 2005 increasing it’s currently 0.3% share of the global ethylene market to between 6-8%.

To achieve its Strategic Program, NPC is determined to operate five main olefin projects, namely, olefin no. 6, 7, 8, 9, and 10 to be in operation by 2005.

Olefin 9 and 10 is to be constructed on the Persian Gulf in Pars Special Economic/Energy zone (Pars EE), also known as Asaluyeh, based on the development of huge South Pars gas field, which is already under way.

Overall project takes $1.2 billion investment, of which 90 percent has been attracted, the official said, adding that South Africa’s largest petrochemicals and synthetic fuels group, Sasol Pty. Ltd. has undertaken to finance 50 percent of the whole project.

Basic polymers output, that is, polyethylene, polypropylene, PVC, polyester and polystyrene, is expected to jump five million tons by 2005, which would mainly be exported, Rahbari concluded.

AF/IS

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MNA