Kazakh development bank to finance modernization of country’s petrochemical plant
Astana, Kazakhstan, Jan. 6
By Daniar Mukhtarov - Trend:
Development Bank of Kazakhstan will take part in financing the modernization of the Pavlodar Petrochemical Plant (PPCP).
The bank said in a message that the total value of the "turnkey" contract is more than $1.2 billion.
"The project is funded primarily with the help of a club loan from Japanese banks," the message read. "Kazakhstan's Development Bank will provide about 25 percent of the needed funding in the form of a loan for up to 10 years for the construction and installation works."
Kazakh tenge (KZT) is the loan currency, the banks said.
The message said the project's realization will allow improving the quality of the motor fuel manufactured by the plant to meet the requirements of the K4 and K5 environmental classes, which correspond to the Euro 4 and Euro 5 standards, as well as to expand the plant's processing capacities.
"After the modernization, the plant's performance in processing the west Siberian oil will rise from five million to seven million metric tons per year, and an opportunity will be provided to process Kazakhstan's oil in a volume of up to five million metric tons per year," the message read.
The bank said in its message that following the commissioning of the first two launch complexes, the PPCP will be able to produce motor fuel of the K4 class on Jan. 1, 2016.
The plant's modernization, which is to be carried out without cessation of the current production, will be completed in 2017.
Thus, two of the three oil refineries in Kazakhstan receive long-term funding from Kazakhstan's Development Bank for modernization projects.
The first phase of modernization of the Atyrau Oil Refinery is coming to an end with the bank's financial support.
The project's total cost is $2.9 billion, and some 45 percent of the needed funding was provided by the Development Bank of Kazakhstan.
"We are pleased to make, together with KazMunaiGas, a worthy contribution to the development of production of high-quality petroleum products in Kazakhstan and ensuring the country's energy security," the message quoted the Development Bank's Head Bolat Zhamishev as saying.
Kazakhstan's Development Bank, a subsidiary of the National Management Holding Baiterek, is a national institute for modernization and development of the non-raw materials and infrastructure sectors of Kazakhstan's economy.
It was established in 2001. The main areas of the bank's activity include the development of manufacturing infrastructure and processing industry, promotion and attraction of foreign and domestic investments in the country's economy.
The Pavlodar Petrochemical Plant is a 100 percent subsidiary of the KazMunaiGas - Processing and Marketing.
It is Kazakhstan's largest enterprise producing petroleum products.
Edited by SI