China Eximbank provides $41.7 million loan for Phase I of Dehkanabad Potash Fertilizer Plant Project (Linked to Record ID#72169 and #40128)

Project narrative

In 2007, China Eximbank provided a $41.705 million loan to Uzbek Industrial and Construction Bank (JSC Uzpromstroybank) for Phase I of Dehkanabad Potash Fertilizer Plant Project. The terms of the loan are as follows: 20 year maturity, 5 year grace period, and 2% interest rate. This project involved the construction of the Dehkanabad potash plant located at the Tyubegatan deposit. Construction of phase 1 of the plant started in 2010. The total cost of the project is $123.7 million. In addition to the China Eximbank funding, the Fund for Reconstruction and Development of Uzbekistan allocated a $61.9 million loan, and Uzkimyosanoat also directed its own funds to finance the construction. This project sought to increase the capacity of the plan to produce 200,000 tonnes of potash per year. In 2008, SJSC Uzkimyosanoat concluded contracts with ZAO UK Zapadouralsky Machine-Building Concern (Russia) and CITIC Pacific Ltd. (China) for the turnkey construction of the facility. Construction began in 2007 and the first phase of the project was completed on October 5, 2010.