Hyundai Engineering & Construction Co. (Hyundai E&C) announced on Oct. 29 that it had scrapped a US$520.75 million deal with Iran's Ahdaf Investment Co. (AHDAF) to create a petroleum refining facility in Iran, reported the Business Korea News Portal.
The report reads, The Iranian company abandoned the deal as its ability to fund the project had been hit by the prospect of the U.S. economic sanctions against Tehran. In general, a client pays 15 percent of construction costs in advance and raises finance for the rest. However, the deal is off as AHDAF is having trouble financing it.
The EPCF contract for phase II of the plant includes Ethane Cracker and Polymer Plants such as Olefin, LDPE, LLDPE, HDPE, MEG, ... was signed between Iranian Ahdaf Investment Co., a subsidiary of Iran Oil Pension Fund Investment Co. (OPIC), and South Korean Hyundai Engineering Co. (HEC) in March 2017; however, due to delay in securing the required finance, the executive works of this phase never started. Phase II of the project was supposed to be financed by Korean Exim Bank (KEXIM).