Azerbaijan, Baku, 18 March / Trend /
Preparatory work was completed to start building a new shipyard in Azerbaijan, Lee Boon Yang, President of the Singapore-based Keppel Corporation Limited, which will build the plant, said to a meeting with the President of SOCAR (State Oil Company of Azerbaijan) Rovnag Abdullayev on March 18 in Baku.
According to Lee Boon Yang, the project aimed at increasing transit and cargo-transport capacity of the country, will raise the relationship between the companies to a higher level.
He expressed confidence that the plant will be the first such enterprise (large and modern), established in the region.
Rovnag Abdullayev also expressed confidence that the most modern ships will be built exactly at the new plant, which will be created in Azerbaijan.
On Nov. 20, in Baku a memorandum of understanding was signed on the construction and operation of the shipbuilding yard by the Singaporean Keppel Offshore & Marine Company.
The plant will be built near the Baku Deep Water Jacket Plant named after Heydar Aliyev of SOCAR.
Memorandum was signed between SOCAR, Azerbaijan Investment Company and Keppel Offshore & Marine. The share of SOCAR at the initial stage of the project will be 70 percent, AIC - 30 percent. Keppel Offshore & Marine intends to acquire 10 percent share in the project, and during the next three years will obtain additional 10 percent.
Under the new concept, the plant is envisaged to be constructed on the basis of already existing infrastructure, so the cost of the project declined as compared to the initial estimates. According to the preliminary feasibility study, the plant's construction totaled nearly $400 million (excluding the cost of construction of the port), but recent estimates will vary between $300-350 million (excluding VAT).
30 percent of project funding will be provided at the expense of SOCAR and the remaining funds will be attracted from external sources.
The plant will be put into operation within 2-2.5 years after the start of construction. The new plant will be equipped with technology to meet modern standards.