...

Azerbaijani cement manufacturer obtains approval to attract ADB loan

Business Materials 11 January 2011 17:24 (UTC +04:00)

Azerbaijan, Baku, Jan. 11 /Trend, N.Ismayilova/

Azerbaijan Garadagh Cement OJSC (cement production) has received a permit to attract loans from the Asian Development Bank (ADB), which is part of a syndicated financing for the project to expand and improve the efficiency of the enterprise, organized by the European Bank for Reconstruction and Development (EBRD), ADB Baku office said.
"Today, all the documents already been prepared and permission has been obtained from the government that allows Garadagh Cement to use ADB funds after signing a contract," the office said.

Support for the project is provided under ADB's strategy and program for Azerbaijan, which focuses on promoting economic growth and non-oil sector development. The purpose of ADB loan in amount of $27 million is to provide the company with more environmentally clean production.

In May 2009, the EBRD board of directors approved financing worth 170 million euro for the project, which will cost a total of 330 million euro. Earlier, it was reported that the project will be financed through credit (credit A / B) worth 150 million euro, approximately 50 percent of which will be offered to commercial banks (lenders Class B). The rest would be financed by the EBRD. Another 20 million euro was to come from an Eurobank loan (Class C), and an additional 30 million euro from the founder Holcim.

EBRD's investments will increase the capacity of Garadagh cement to 1.7 million tons from the current 1.3 million per year, as well as reduce the energy used to produce one ton of cement. As part of the modernization and expansion of Garadagh, it is planned to increase production of clinker from 2,616 to 4,000 tons per day and annual cement production from 1.3 million tons to 1.7 million tons without imports. Funding will cover a construction period from mid 2009 to the first half of 2011, when a new furnace is planned to be launched. As a result of the project, the plant's overall emissions of carbonic dioxide must be reduced by 10 percent.

The project is expected to achieve substantial energy savings by an over 50-percent reduction in energy consumption per unit of clinker production. The introduction of modern technology will provide the opportunity to transmit and increase skills.

OJSC Garadagh Cement is the only manufacturer of clinker and cement at the base in Azerbaijan. The company provides the domestic market with high quality products that meet both local and international standards.

Holcim Ltd owns 66 percent share, Azerbaijan Investment Company - 10 percent, the European Bank for Reconstruction and Development - 10 percent, Holcim Auslandbeteiligungs GmbH - 3.39 percent, Azer Invest Company - 0.26 percent, the remaining 10.35 percent belongs to private individuals.

Latest

Latest