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Uzbekistan to announce $250-million tender by late May

Business Materials 23 March 2010 16:44 (UTC +04:00)
Uzhimprom, a state joint stock company, plans to announce a tender for the construction of the second stage of the Dehkanabad potash fertilizer plant in the Kashkadarya region with preliminary cost of $250 million, Uzhimprom Deputy Chairman Riskivoy Yakubov said.
Uzbekistan to announce $250-million tender by late May

Uzbekistan, Tashkent, March 23 / Trend D. Azizov /

Uzhimprom, a state joint stock company, plans to announce a tender for the construction of the second stage of the Dehkanabad potash fertilizer plant in the Kashkadarya region with preliminary cost of $250 million, Uzhimprom Deputy Chairman Riskivoy Yakubov said.

"We plan to announce a tender in two months. Practically, there will be several lots, since the amount of work will be more than we planned," Yakubov said.

He said that the government has decided to expand production capacity of the second stage from the previously planned 200,000 tons to 400,000 tons. The country intends to produce potash fertilizers worth 600,000 tons by late 2014, of which about 350,000 tons will be exported.

The construction of the second stage of the plant will be built at the expense of Uzhimprom, the Uzbek Reconstruction and Development Fund and loans from foreign banks.

The new construction is planned to start in early 2011 after the first stage of the plant reaches full-operating capacity. The construction period of the second stage is three years.

Uzbekistan launched the construction of the first stage of the Dehkanabad potash fertilizer plant with capacity of 200,000 tons of potash fertilizer in 2007. In autumn 2007, Uzhimprom signed contracts to build a plant worth $99.9 million with Russia's West-Ural Machine Building Concern CJSC and the Chinese CITIC Pacific Ltd.

The $123.7-million construction is financed by the Uzbek Fund for Reconstruction and Development, the Chinese Eximbank and by Uzhimprom.

The plant will be constructed on the basis of Tyubetagan deposit of potassium salts in the Kashkadarya region on the border with Turkmenistan. Total industrial reserves of the deposit hit 400.2 million tons of ore with a content of potassium chloride at 36.8 percent. The most promising part of the deposit with reserves worth 200 million tons of ore is situated on the territory of Uzbekistan. The plant is planned to be put into operation in July 2010.

It was reported that in late 2009 the West-Ural Machine Building Concern completed the construction of a mining complex worth $56 million. In the second half of 2010, the Chinese company plans to put into operation the enrichment processing complex worth $44 million.

Currently, potash fertilizers in Uzbekistan are not produced. They are imported mainly from Russia and are 50,000 tons annually. It is planned that the new plant will not only ensure the domestic demand of potash fertilizer, but also partially export them to countries of Central Asia and China.

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