Iran approves China’s RMB 3.897B loan for 1,758 MW solar project

 Iran’s Economic Council has approved a RMB 3.897 billion (~$545.58 million) foreign loan from China to fund 586 solar plants with a total capacity of 1,758 MW. The approval, signed by Hamid Pourmohammadi, head of the Planning and Budget Organization (PBO), was sent to the Ministry of Energy on February 16. The project’s total cost is RMB 4.585 billion (~$641.90 million), including RMB 687.758 million (~$96.29 million) as an advance payment, making up 15% of the contract value. Foreign financing has a repayment cap of RMB 4.893 billion (~$685.02 million), covering RMB 996 million (~$139.44 million) in interest and related costs. The Ministry of Energy will repay the loan using revenues from electricity sales, bilateral contracts, and exports, without government financial burden. The Renewable Energy and Energy Efficiency Organization (SATBA) will finance the advance payment using electricity export revenues or other resources.