China Eximbank provides RMB 1.629 billion loan for Samarkand Cement Plant Construction Project

Project narrative

In 2023, the Hubei Branch of the Export-Import Bank of China (China Eximbank) and Hengyuan Cement Joint Venture Co., Ltd. [also known as Uzbekistan Hengyuan Cement (Joint Venture) Co., Ltd. or (恒遠水泥合資有限公司)] — a special purpose vehicle and joint venture of China Gezhouba Group Overseas Investment Co., Ltd. [55% equity stake], China Gezhouba Group Cement Co., Ltd. [40% equity stake], and Gansu Hengya Cement Co., Ltd. [5% equity stake] — signed an overseas investment (fixed asset) loan agreement worth approximately RMB 1.629 billion ($215,466,700) for the Samarkand Cement Plant Construction Project. The loan carries an 8-year maturity and a 1-year grace period, but its interest rate is unknown. China Energy Engineering Corporation issued a repayment guarantee in support of the loan. The purpose of the project is to construct a cement plant in the Kattakurgan district of Samarkand region with the capacity to produce 7,500 tons per day and 3 million tons per year. Upon completion, the project is expected to lead to 600 new direct jobs. The cement plant was first announced in 2018, but its construction was repeatedly delayed due to the Covid-19 pandemic. The project’s groundbreaking ceremony ultimately took place on September 27, 2023.