Signing of loan agreement between EBRD and Azerbaijani cement plant determined
Azerbaijan, Baku, October 9 / Trend N. Ismayilova /
The loan agreement on allocation of €120 million to expand capacity of a cement plant for 30 percent will be signed between the European Bank for Reconstruction and Development (EBRD) and the only cement producer in Azerbaijan - Garadagh Cement on October 12, EBRD's Baku office said. Total cost of the project is €330 million.
EBRD director for Caucasus, Moldova and Belorussia Paul-Henri Forestier will arrive in Azerbaijan to participate in the ceremony of signing, the representation said.
It is planned to increase clinker from 2,616 to 4,000 tons per day and annual cement production up to 1.7 million tons without clinker import in the course of modernization and extension of Garadagh Cement. Construction will be financed from mid. of 2009 to the first half of 2011. New stove is expected to be put into operation that period.
It is planned to save much energy owing to more than 50-percent-reduction of energy consumption within the project.
EBRD loan will support the company leading in corporative governance and business in hard terms.
The project is the largest direct foreign investment beyond oil and energy sector of Azerbaijan. It must give positive effect for other potential investors from private sector.
It is designed to draw co-financing of commercial banks in volumes and terms of paying off which have not been achieved beyond oil sector in Azerbaijan.
Swiss Holcim (69,4 percent), the European Bank for Reconstruction and Development and Azerbaijani investment company (10 percent), private shareholders (10,6 percent) are partners of Garadagh Cement JSC.
Do you have any feedback? Contact our journalist at: [email protected]