London, Dec. 17, IRNA - The British government's Export Credits Guarantee Department (ECGD) confirmed Tuesday that it had completed the signing of the first full cover for an Iranian project in more than 20 years.

An ECGD spokesman told IRNA that the cover was for a Pnds 23.4 million (Dlrs 37.2 m) carbon monoxide plant being built by UK branch of Snamprogetti at Bandar Imam Complex for Fanavaran Petrochemicals, a subsidiary of the National Petrochemical Company (NPC).

Britain's credit agency announced in January that it was providing a Dlrs 28 m reinsurance facility for equipment for a coal mine in Tabas but only as part of a consortium of other agencies, led by Sace of Italy, offering cover for the Dlrs 150 m project.

International Trade Minister Baroness Symons welcomed ECGD's role in the latest deal, saying that Iran offers many opportunities for UK exports, particularly in the oil and gas sector.

"Snamprogetti has shown considerable application and initiative in securing this multi-million pound deal. I am delighted that UK design and engineering expertise was at the forefront of this project," she said.

The financial director of the Italian construction group, Giancorrado Stucci, who was travelling back from Tehran Tuesday, also praised ECGD's support, saying he hoped to "do more business" with Fanavaran and NPC as the project had "further developed our links."

In February, HSBC Investment Bank announced that it was providing a loan facility with Bank Tejarat to finance the construction of the carbon monoxide plant, which is to be used in the production of a range of chemicals, plastics, solvents and detergents.

Senior representative at HSBC's office in Iran, John Richards, described the resumption of credit by the UK as an "important step which needs to be fully supported by the international banking community."

ECGD restored medium-term insurance for Iran in October 2000 after withdrawing cover following the victory of the 1979 Islamic Revolution.

Protracted negotiations on the long-standing dispute over pre- revolutionary debts were not finally settled until March this year, when ECGD declared that it would make no further attempts to recover outstanding debts.