Uzbekistan, Tashkent, Sept. 14 / Trend D. Azizov /
Chinese Exim Bank and Uzbek Industrial and Construction Bank signed a loan agreement to the sum of $77 million on Wednesday to finance a project to expand the capacity of the Kungrad soda plant in north-western Uzbekistan, the Uzbek Industrial and Construction Bank told Trend today.
According to the information, the Uzbek Industrial and Construction Bank has been determined as a refinancing bank while using Chinese Eximbank's loan.
The loan is being been delivered over 20 years, including a five-year grace period. The interest rate was not disclosed.
The funds were allocated for a SCO member-state lending programme within Uzbekistan's economic cooperation with China.
It was previously reported that China's CITIC signed a contract on the design and equipment supply to increase the capacity of Kungrad soda plant by 1.5 times to 150,000 tons per year with the State Joint-Stock Company Uzhimprom in June 2012.
The project's implementation period is two years. The contract value was not disclosed. Uzhimprom's units will deal with construction operations
Besides the Chinese Eximbank loan, the project worth $110 million will be financed by a loan from the Reconstruction and Development Fund and Uzhimprom's own funds.
The soda plant capacity will be expanded by increasing the production of limestone in the Jamansay quarry and technical salt at the resource base of the Kungard soda plant at the Barsakelmes field in Karakalpakstan (an autonomous republic in north-western Uzbekistan).
The Kungrad soda plant with a current design capacity of 100,000 tons of soda ash per year was commissioned in August 2008 by China's Citic Pacific Ltd. The total project cost was $250 million.
The Uzbek Industrial and Construction Bank was established in Uzbekistan in 1922. It was re-registered in 1991.
Over 35,000 shareholders, including 31,500 physical entities and 3600 legal entities have shares in the bank. The largest shareholders are the Uzbek Ministry of Finance (35 per cent) and the Uzbek Reconstruction and Development Fund (26 per cent).
The official exchange rate is 1.930.25 soums/$ 1 on Sept. 13.