Abstract for: Behavior of NDF financing system and its impact on the Performance of Petrochemical projects in Iran

The National Development Fund (NDF) of Iran has been formed with the aim to convert part of the proceeds from the sale of the oil and gas, the gas condensate, and the petroleum products into the sustainable, productive wealth and economic productive capital, and maintaining the share of future generations in the oil and gas resources and petroleum products. This institution, during the sanctions and the decline in the presence of foreign investors, has played a key role as the largest capital supplier in the downstream oil and gas projects. In recent years as the country's foreign exchange channels have narrowed down due to sanctions, LC holders from NDF have been complaining about the delay in the fulfillment of obligations by NDF, while on the other hand, NDF has suffered from the delays in facilities repayment. The vicious cycle of nonfulfillment of the obligations of the parties to these civil partnership agreements, has led us to examine the behavior of the system and the pathology of the aforementioned problems using the system dynamics method. The data collected through interviews with a group of managers of petrochemical companies holding LCs from the NDF, managers of the operating banks, and managers of the NDF has helped in the identification of the different causal loops which are responsible for the behavior of the system and creating a direct linkage between the timely return of facilities and the project performance.