Azerbaijan, Baku, Aug. 28 / Trend /
The loan of the European Bank for Reconstruction and Development (EBRD) worth $120 million, which will be issued to AZMECO, will be spent for procurement, construction and development of the methanol plant for with the capacity of 561,000 tons per year in Azerbaijan, including the possibility of a CO2 Capture Unit, said AZMECO.
The company also plans to produce urea and ammonia in the subsequent stages of development, the AZMECO said. The total cost of the methanol plant's construction is over $300 million.
In accordance with the policies to protect the environment, the company held examinations to assess the current state of the enterprise and activity of AZMECO, as well as the impact of the project on the environment.
Studies have shown that the project will have no significant impact on the environment.
The construction of the plant began in 2007, and AZMECO's own contribution to this project is $70 million. In addition, the International Bank of Azerbaijan, EDC of Canada and the Black Sea Trade and Development Bank are also participating in financing this project, the source said.
The EBRD Board of Directors is expected to approve the project on Sept. 22. The EBRD finance will be carried out in two installments: a 90 million USD senior loan for up to 9 years and the remaining 30 million USD as a senior performance-linked loan fully paid in year 10.
The methanol plant, which will be located in the Garadag region, is expected to be put into operation in the third quarter of 2010.
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