Uzbekistan refuses to sign contract with China’s CNCEC on constructing chemical complex

Business Materials 29 May 2014 15:37 (UTC +04:00)

Tashkent, Uzbekistan, May 29

By Demir Azizov- Trend:

Uzbekistan's Uzhimprom State Joint Stock Company didn't sign the contract with China's China National Chemical Engineering Company (CNCEC) on constructing a chemical complex, a representative of the Uzbek company told Trend on May 27.

The chemical complex was designed to produce polyvinyl chloride (PVC), caustic soda and methanol.

The Chinese company won the tender on constructing a 'turnkey' chemical complex in September 2013. The starting price of the contract was $440 million. The winner of the tender was to construct the chemical complex with the design capacity of 100,000 tonnes of polyvinyl chloride, 71,800 tonnes of caustic soda and 295,400 tonnes of methanol per year.

The representative of the Uzhimprom company said that the CNCEC company couldn't provide an affordable financial offer and the negotiations on the contract were deadlocked.

Currently, the total cost of the project is estimated at $501 million. It was planned to finance the project with the equity of the Uzhimprom State JSC, loans of Uzbekistan's Fund for Reconstruction and Development and the loans from the international financial institutions.

The project was expected to be completed by 2016.

The company representative went on to add that currently, the Uzhimprom State JSC intends either to hold direct talks with other tender participants, or to announce a new tender.

Uzbekistan has taken steps to implement this project for many years.

Edited by C.N.