Azerbaijan, Baku, Dec. 28 / Trend A.Tagiyeva /
Exports of the Petkim petrochemical complex will reach five billion dollars by 2023, head of SOCAR Turkey Energy and board member of petrochemical complex Petkim Kenan Yavuz said, Hurriyyet reported on Friday.
"Petkim will import only oil. The complex will provide all other energy products on its own," Yavuz said.
He said Turkey allocated the first certificate for granting tax breaks to encourage of investments in the country which appear to be the stimulus for Petkim's continued success.
Up to six billion dollars will be sent to back the construction of a new oil refinery in Turkey. The work will be partly financed by shareholders' funds (30 per cent) which will equal $1.8 billion, while the rest will be financed through bank loans.
The main purpose of this enterprise is to provide raw materials for the Petkim petrochemical complex , a share of which is owned by State Oil Company of Azerbaijan (SOCAR).
The annual production capacity of naphtha at the plant which is used by Petkim as a raw material, will reach 1.66 million tons. More than 80 per cent of the Petkim needs in NAFTA are provided by imports. With the commissioning of the new refinery, dependence on imports will be reduced to zero.
Exemption from the payment of value added tax and customs duties is granted in the project.
Simplification of tax up to 90 per cent is envisaged and the state will provide a VAT refund during the construction of the plant.
In addition, Turkey will pay the minimum amount of insurance to workers within a period of seven years and allocate $50 million (five per cent of the total investment volume) as assistance in the payment of interest.