China Eximbank provides $373.8 million for Navoiazot PVC Chemical Complex Construction Project

Project narrative

In 2013, China Eximbank issued a $373.8 million loan to Joint-Stock Company (JSC) Uzkimyosanoat -- an Uzbek state-owned chemical company -- for the construction of polyvinyl chloride (PVC) plant at the Navoiazot chemical complex in Uzbekistan. JSC Uzkimyosanoat then on-lent the proceeds of the loan to JSC Navoiyazot, which is a special purpose vehicle and wholly-owned subsidiary of JSC Uzkimyosanoat. The borrowing terms of the loan were as follows: a 20 year maturity, a 5 year grace period, and a 2.5% interest rate. The estimated cost of this project was initially $470.8 million, but then it increased to $501.1 million in 2015. $65.9 million of the financing for this project reportedly came from a loan from Fund for Reconstruction and Development of Uzbekistan, and $61.4 million came from Uzkhimprom's own resources. The purpose of the project was to construct the Navoiazot chemical plant (ОАО Навоиазот) -- a polyvinyl chloride (PVC), caustic soda and methanol production complex-- in Navoi. Upon completion, it was expected that the plant would have the capacity to produce 100,000 tons of PVC, 300,000 tons of methanol, and 75,000 tons of caustic soda each year. The contractors responsible for project implementation were China CAMC Engineering Co., Ltd. and HQC (Shanghai) Company. The project's originally expected implementation start date was October 1, 2013. Its originally expected completion date was May 1, 2016. However, construction did not ultimately begin until December 2015. The project was completed on September 26, 2019.