EBRD ready to support the sole cement producer in Azerbaijan
The European Bank for Reconstruction and Development (EBRD) is ready to support activity of the Garadah Cement and the issue of crediting the factory is now under discussion, the EBRD president, Jean Lumiere told Trend. He agreed that the cement industry is of high importance for the future of the country, therefore the bank is ready to support the sole cement producer in the country. However, talks with the Swiss company Holcim, which has privatized Garagah Cement in 1999, are still at the preliminary stage.
The EBRD head added that in order to promote the cement industry it is necessary to create a transparent administrative system, fight corruption, control decisions and create the competitive banking system.
The EBRD Council of directors will review the possibility of purchasing 20% of Garagah Cement assets for $10m. Holcim today controls 89, 4% of all assets and the rest are in hands of small shareholders. The factory is expected to match the European standards by 2010, therefore $100- 110m is needed on its reconstruction.