Uzbekistan, Tashkent, Sept.22 / Trend, D. Azizov /
Chinese "Eximbank" and Uzpromstroybank Uzbek Joint Stock Industrial Construction Bank signed a loan agreement worth $110.5 million to implement a project to build the second phase of Dekhkanabad potash fertilizer plant in Kashkadarya region (south of Uzbekistan) on Wednesday, a source in government circles told Trend.
According to report, the loan has been issued for 20 years at five-year grace period under the guarantee of the Uzbek Government from the funds of a credit line reserved by the Chinese Government for SCO member countries. The interest rate is not disclosed.
The construction of the second phase of the Dekhkanabad plant envisages tripling the plant's capacity - up to 600,000 tons of potash per year, about 350,000 tons of which will be exported.
A preliminary feasibility study on construction of the second phase of the Dekhkanabad plant with design capacity of 400,000 tons was approved by the government in February.
Construction of the second phase is scheduled to begin in 2011 and end in 2013.
Financing the construction at a total cost of $254.5 million will be carried out in addition to the China "Eximbank" loan, at the expense of a loan of the Reconstruction and Development Fund of Uzbekistan worth $125 million, as well as funds from the State Joint Stock Company "Uzkhimprom".