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Overview

ICBC provides $140 million loan for Karauzak Cement Factory Construction Project

Commitments (Constant USD, 2023)$129,099,829
Commitment Year•2021Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 8, 2021
Start (actual)
Feb 21, 2019
End (actual)
May 18, 2022

Geospatial footprint

Map overview

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The purpose of the project was to construct a 5,000 tons-per-day (t/d) cement plant in Nukus District in Karakalpakstan. More detailed locational information can be found at: https://www.openstreetmap.org/relation/2094540

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Karauzak Cement LLC

Implementing agencies

State-owned companies

  • China MCC17 Group Co., LTD

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

ICBC provides $140 million loan for Karauzak Cement Factory Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 8, 2021, the Industrial and Commercial Bank of China (ICBC) and Karauzak Cement Co., Ltd. (卡尔希海螺水泥有限公司 or 卡尔希海螺水泥外国企业有限公司 or 卡尔希海螺水泥外) — a special purpose vehicle owned by Anhui Conch Cement Company Limited and Karauzak Cement — signed a $140 million (fixed asset) loan agreement. The Sinosure-backed loan carried a maturity of 10 years, but its grace period and interest rate are unknown. The borrower was expected to use the proceeds of the loan to partially finance a $273 million commercial contract between Karauzak Cement Co., Ltd. and Tianjin Cement Industry Design and Research Institute (Sinoma TCDRI), which was signed on September 29, 2020. The purpose of the project was to construct a 5,000 tons-per-day (t/d) cement plant in Nukus District in Karakalpakstan. China MCC17 Group Co., Ltd. was the contractor responsible for project implementation. Project implementation commenced in February 2019 and the cement plant was put into production on May 18, 2022.

Staff comments

1. The Chinese project title is 乌兹别克斯坦日产5000吨熟料水泥生产线项目 or 的塔什干海螺水泥项目 or 卡尔希海螺水泥项目. 2. Karauzak Cement is a Korean private company