Uzbekistan, Tashkent, May 30 /Trend D.Azizov/
A resolution of the Government of Uzbekistan on measures to ensure implementation of the investment project 'Construction of a propane-butane mixture on Shurtanneftegas (5th place)', approved the updated amount and the scheme of the project's financing.
According to the decree, the project is financed through the funds of the National Holding Company Uzbekneftegaz to the sum of $48.97 million and a loan from the Fund for Reconstruction and Development of Uzbekistan (FRDU) for $37.5 million - total $86.47 million.
The FRDU loan will be refinanced through the Uzpromstroybank. The Foundation provides funds for seven years with a two year grace period at an annual interest rate of seven per cent considering a two per cent margin of the bank.
Previously the project cost was estimated at $74.3 million, $36.8 million of which accounts for the Holding and $37.5 million for FRDU.
Borrower and the executive body responsible for implementation of the project, targeting and making effective use of FRDU credit is NHC Uzbekneftegaz. The costs associated with repayment of the principal, interest payments and commissions on FRDU credit, are implemented at the expense of NHC Uzbekneftegaz.
As previously reported, the project envisages the construction of the fifth stage of the propane-butane mixture with design capacity of three billion cubic meters of natural gas per year for the additional production of 50,000 tons of liquefied gas annually.
Equipment suppliers are the Russian OAO Kazan Motor-Building Production Association (KMPO) and the Ukrainian Sumy Machine Building Scientific Production Association, named after Frunze.
Completion of the construction is scheduled for the end of 2012.