Uzbek company announce repeated tender on equipment procurement

Business Materials 12 January 2014 13:51 (UTC +04:00)

Tashkent, Uzbekistan, Jan. 12

By Demir Azizov - Trend:

Ferghana Azot joint stock company, the largest nitrogen fertilizer production enterprise in Uzbekistan, announced a repeated tender for the purchase of equipment with a maximum value of $15.5 million as part of a project to increase the production capacity of carbamide and ammonia, the company said on Friday.

The tender bids will be accepted until February 10. The results will be summed up in April.

The initial tender, announced in June 2013, was declared invalid due to lack of competitive bids.

Last summer, the company started implementing a project to reconstruct and modernize the production of carbamide and ammonium nitrate with a total cost of $62.3 million. It is planned to increase production capacity by 1.5 times until 2016.

It is planned to increase carbamide production by 30,000 tons, ammonium nitrate - by 62,000 tons, ammonia - by 50,000 tons, nitric acid - by 50,000 tons.

The main objective of the project is to improve reliability and performance of AM-76 units and operational safety, as well as reducing the energy intensity of the unit and the cost of ammonia.

The natural gas consumption for producing a ton of ammonia will be reduced by 20.3 cubic meters, while the total gas consumption - by 81.2 million cubic meters annually, electricity consumption - 72 kW / h, total consumption - 28.4 million kWh / year, according to the feasibility study.

It is expected that the project implementation will ensure reducing the ammonia prime cost by 12.6 percent and emissions of nitrogen oxides into the air by 149.3 tons, ammonia - by 16.3 tons annually.

The project is planned to be financed through the company's own funds to the amount of $16.3 million, a loan from the Uzbek Reconstruction and Development Fund - $ 24 million and loans from Uzbek banks totaling $ 22 million.

Ferganaazot (previously Nitrogen) was commissioned in 1956.

The design capacity currently stands at 270,000 tons of carbamide and 350,000 tons of ammonium nitrate per year.

Translated by NH