China Eximbank provides $70 million preferential buyer's credit for the South Kyrgyz Cement Factory Construction Project in Kyzyl-Kiya City

Project narrative

In 2006, China Eximbank provided a $70,020,000 preferential buyer's credit (PBC) loan to Turan-Alem Bank (or BTA Bank) — a state-owned bank in Kazakhstan — for the construction of the South Kyrgyz Cement Factory in Kyzyl-Kiya City. BTA Bank then used the proceeds of the loan to on-lend to the project company (South Kyrgyz Cement CJSC or ЗАО "Южно-Кыргызский Цемент") responsible for the construction of the cement factory. This loan was also guaranteed by BTA Bank. This project officially broke ground on March 25, 2006, with China CAMC Engineering Co Ltd implementing the project (as the EPC contractor) in partnership with South Kyrgyz Cement CJSC. The plant was expected to have an output of 2500 tons of cement per day and it was slated for completion in 2008. The cement production line was successfully put into operation in September 2009. The plant was officially commissioned on July 12, 2009. Although there was turmoil in the country including riots near the factory, a technical team successfully completed the performance evaluation of the production line and handed over the factory to the owner for management.