ICBC provides $29.2 million export buyer's credit loan for Kungrad Soda Ash Plant Project (Linked to Record ID#54832)

Project narrative

In 2003, Industrial and Commercial Bank of China (ICBC) signed a $29.23 million export buyer's credit loan agreement with Uzbek Industrial and Construction Bank (JSC Uzpromstroybank) for the construction of the Kungrad Soda Ash Plant in Uzbekistan within the autonomous republic of Karakalpakstan. The loan carried an interest rate of LIBOR + 1.5%. Sinosure provided insurance. CITIC Group and Uzkimyosanoat were responsible for project implementation. Under the terms of its contract, Citic Pacific Ltd. designed and constructed the plant on a turnkey basis (in which CITIC would turn over the plant after a certain number of years of its operation) at a cost of $32.3 million. The plant was officially commissioned in August 2006. This project sought to achieve a production capacity of 100,000 tons of soda ash per year — by mining limestone from the Jamansay (Dzhamansay) quarry and the Barsakelmes field salt field in Karakalpakstan (an autonomous republic in north-western Uzbekistan). The main consumers of soda plant are Uzbek enterprises that produce household chemicals and building materials, including various types of glass. In 2012, the capacity of the plant was expanded to 200,000 tons per year, which was partially financed by a loan from China's Eximbank (see Record ID#54832).