Azerbaijan, Baku, June 25/ Trend , U.Ismaylova /
The European Bank for Reconstruction and Development (EBRD) approved €170 million to expand by 30 percent the capacity of Garadagh Cement Plant in Azerbaijan, on which a loan agreement is expected to be signed in July, the head of the EBRD Baku office, Francis Deley, said on June 25. Total project cost amounts to €330 million.
The main credit (credit A/B) totals €150 million, approximately 50 percent of which will be offered by the commercial banks (B Class lenders), and the rest will be financed by the EBRD. A further €20 million loan will be C class subordinated credit of EBRD, and further €30 million subordinated loan will be provided by the founder - Holcim.
In the course of modernization and expansion of Garadagh Cement, plans to increase the production of clinker from 2616 to 4000 tons per day and annual cement production to 1.1 million tons to 1.7 million tonnes with imports of clinker. Funding focuses on the period from mid 2009 through the first half of 2011, when the expected commissioning of a new furnace.
Within modernization and expansion of Garadagh Cement, there are plans to increase the production of clinker from 2,616 to 4,000 tons per day and annual cement production from 1.1 million tons to 1.7 million tons without import of clinker. Funding is envisaged for a period from mid 2009 to the first half of 2011, when commissioning of a new oven is expected.
EBRD investment will increase capacity of Garadagh Cement Plant to 1.7 million tons from the current 1.3 million per year, as well as reduce energy costs for the production of one ton of cement.
Partners of Garadagh Cement JSC are Swiss Holcim (69.4 percent), EBRD and Azerbaijan Investment Company (10 percent), private shareholders (10.6 percent).
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