China Eximbank pledges loan for Oriana Potash Plant Reconstruction Project

In April 2011, the Export-Import Bank of China, Wuhuan Engineering, Kitpred, the Ecology and Natural Resources Ministry and Ivano-Frankivsk regional administration signed a loan framework agreement on the creation of non-chloric potash fertilizers in Kalush at the Oriana potash plant. This project is located in Kalush in the Ivano-Frankivsk region. China’s Wuhuan Engineering Co. Ltd. and Kitpred company agreed to contribute to financing the project with equity investment and Ivano-Frankivsk regional administration signed the contract. Then, in June 2011, a commercial contract on reconstruction of the Oriana potassium plant in Kalush was signed between China’s Wuhuan Engineering Co. Ltd., Kitpred company and Ivano-Frankivsk regional administration. The design capacity of the plant is 499.2 thousand tons of potassium magnesium per year. The main products of the plant were sulfate forms of potassium fertilizers (potassium magnesium) and kainite - a double salt of potassium and magnesium. The total project cost was 1 billion USD. According to the 2013 Kyiv post article, Ukraine sought to have local Ukrainian financiers fund the potash plant. The Chinese funding has not been cancelled, but no agreement has been signed since the framework agreement.

Number of official sources

4

Number of total sources

9