Bank of China provides $232 million loan for the Bitumen (Asphalt) Plant Construction Project (Linked to Project ID#55030 and #73404)

On September 28, 2010, the Bank of China (BOC) signed a $232 million USD loan agreement for the construction of a bitumen (asphalt) plant in Aktau. The loan carried a maturity of seven years, and JV Caspi Bitum LLP pledged the plant as a guarantee for the loan. JV Caspi Bitum LLP was a project company (special purpose vehicle) that established in October 2009 to assume responsible for the financing, design, and implementation of the Bitumen Asphalt Plant Construction Project. Its owners were Kazakhstan Petrochemical Industries JSC (KPI) (50%), a subsidiary of KazMunay Gas, and CITIC Kazakhstan LLP (50%), a subsidiary of CITIC Group. The proceeds of the BOC loan were meant to cover 80% of the cost of the bitumen (asphalt) plant. The total cost of the project was $290 million USD; KPI and CITIC Kazakhstan each contributed the remaining 10% ($29 million USD). For CITIC Kazakhstan's contribution, see linked project ID#73404. This bitumen asphalt plant was located in the city of Aktau, at the former Aktau Plastics Plant in the Mangystau Region. The project sought to construct a plant enable to produce high quality road bitumen in order to satisfy the Kazakhstan's requirements for road construction. The plant was expected to produce 406,500 tons of road bitumen, 225,400 tons of petrol-diesel fraction, and 330,300 tons of vacuum gas oil per year. The plant was planned to use up to 1 million tons of oil per year from the Mangystau Karazhanbas as feedstock. The plant was also intended to reduce Kazakhstan's reliance on Russian bitumen imports. JSC OGCC KazStroyService and CITIC Construction Co., Ltd. were contractors responsible for project implementation Work on the project was expected to be completed in December 2012. Construction was launched on June 9, 2010. However, the official commissioning of the plant took place on December 12, 2013 (pg.35 of "JSC NC "KazMunayGas" Annual Report 2013"). The project completion ceremony was held on December 20, 2013. This loan was refinanced by BOC in June 2016, as captured by linked project ID#55030.

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