Azerbaijan, Baku, October 22 / Trend , N.Ismayilova /
The European Bank for Reconstruction and Development (EBRD) has approved a $120 million loan for AZMECO Company for the construction of a methanol producing plant in Azerbaijan, EBRD Baku Office said on Oct. 22.
The date of signing the project has not yet been established, the same source said.
EBRD approves up to USD 120 million financing with 2 separated tranches: a USD 90 million senior loan up to 9 years; a USD 30 million Senior Performance-Linked Financing fully re-paid in year 10.
The construction of the plant began in 2007 and AZMECO's own investment in this project is $70 million. The International Bank of Azerbaijan, EDC of Canada and the Black Sea Trade and Development Bank also finance this project, the company said.
The total cost of the project on construction of methanol plant is over $300 million.
The methanol plant which will be located in the Garadag region is expected to be put into operation in the third quarter of 2010. Work on construction of the plant was launched in 2007.
In the first phase, the production capacity of the methanol plant will be 720,000 tons per year. Completion of the second phase of construction, which involves the production of nitrogen fertilizer, is scheduled for 2011. In the second phase of the construction it is scheduled to produce about 400,000 tons of nitrogen fertilizer.
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