NPC's financial commitments for 1st Development Plan shrink to 4% of its total commitments

   NPC's outstanding financial commitments for the construction of projects under the first development plan (1991-95) have reduced to 4 % of its total commitments. According to a report by NPC International Ltd., which is an NPC subsidiary taking care of arranging financial facilities and attracting foreign investment, NPC's financial obligation under its 1st Development Plan has diminished from an original amount of $1.7 bn to $74 m in May 2000.

   The repayment schedule started in 1995 and will end by mid 2001. The 1st plan projects were mainly financed on the basis of Export Credit Facility with major international financial institutions covered by Export Credit Agencies (ECAs) of the respective countries where the financial resources were provided.
   The Iranian banking system secured the credit facilities by means of providing Bank Guarantees. As direct 'borrower', NPC has successfully repaid its debt on schedule through the proceeds generated from exporting the products of the financed projects. NPC used the credit facilities for constructing several major petrochemical plants, including Bandar Imam, Arak and Khorasan Petrochemical complexes.