China Eximbank provides $110.5 million preferential buyer’s credit loan for Phase II of Dehkanabad Potash Fertilizer Plant Project (Linked to Record ID#72169 and #40129)

Project narrative

On September 22, 2011, China's Eximbank and Uzbek Industrial and Construction Bank (JSC Uzpromstroybank) signed a preferential buyer’s credit (PBC) agreement worth $110.5 million to build the second phase of the Dehkanabad potash fertilizer plant. The borrowing terms of the loan are as follows: a 20 year maturity, a 5 year grace period, and a 2% interest rate. The Government of Uzbekistan provided a sovereign guarantee for the loan. The project was also to be funded by FRD ($62 million) and Uzkimyosanoat ($22 million) for a total of $126 million. The second phase of the project was meant to triple the capacity of the plant — to at least 600,000 tons of potash per year, 350,000 tons of which was planned to be exported. CITIC Construction was responsible for the construction of the plant. The project was completed on March 18, 2014.