South Korea to allocate $1 bln to build gas chemical complex in Uzbekistan

Business Materials 27 March 2012 19:28 (UTC +04:00)

Uzbekistan, Tashkent, March 27 / Trend D.Azizov /

Export-Import Bank of Korea approved the allocation of $1 billion for the project to build Ustyurt gas and chemical complex (GCC) at Surgil field (northwest Uzbekistan) worth $4.03 billion, the Bank said on Tuesday.

As previously reported, in February, 2012 President of Uzbekistan approved the scheme of financing of the project; the official launch ceremony at Ustyurt took place in August, 2011.
The project will be backed by the founders Uz-Kor GasChemical LLC which are the National Holding Company (NHC) and a consortium of various Korean companies putting in $705.43 million each, as well as loan of $100 million from the Fund for Reconstruction and Development of Uzbekistan (FRDU).

In addition, Uz-Kor GasChemical will attract loans from international financial institutions, foreign commercial banks under guarantees. Also there will be nsurance coverage from the Asian Development Bank (ADB), Korea Eximbank (KEXIM), the Korean state-trading Insurance Corporation (KSURE) and other export -import agencies and international financial institutions on the basis of project funding of $2.520 billion (62.5 per cent of the total estimated cost of the project).