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Overview

CDB provides $85 million loan for Mubarek Gas Chemical Complex Project

Commitments (Constant USD, 2023)$87,172,020
Commitment Year•2014Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2014
End (actual)
May 14, 2013
First repayment (originally scheduled)
Jan 1, 2016
Last repayment (originally scheduled)
Dec 30, 2022

Geospatial footprint

Map overview

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The Mubarek Gas Processing Plant (Мубарекская ТЭЦ or Muborak gazni qayta ishlash zavodi) is located in the city of Muborek within the Kashkadarya region. More detailed locational information loan be found at https://www.openstreetmap.org/way/220695187#map=14/39.1848/65.2945

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU)

Implementing agencies

Private Sector

  • Zeromax GmbH (Switzerland)

State-owned Banks

  • National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU)

State-owned companies

  • JSC Uzbekneftegaz

Guarantors

State-owned Banks

  • Uzpromstoybank

Loan desecription

CDB provides $85 million loan for Mubarek Gas Chemical Complex Project

Grace period•2 yearsGrant element•14.425%Interest rate (t₀)•6.2%Interest type•Fixed Interest RateMaturity•9 years

Narrative

Full Description

Project narrative

In 2009, China Development Bank and the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan signed an $85 million loan agreement for the construction of a propane-butane mixing unit at the Mubarek Gas Processing Plant. This loan carried the following borrowing terms: a 9 year maturity, a 2 year grace period, a 6.2% interest rate, a 1.5% management fee, and a 0.5% commitment fee. Uzpromstoybank JSC provided a guarantee for the loan. The purpose of the project was to construct a gas chemical complex that is is located in the city of Muborek within the Kashkadarya (also spelled as Qashqadaryo) region of Uzbekistan. The plant was eventually expected to produce 492,000 tons of polyethylene, 66,000 tons of condensate gas and tonnes of pyrolized petroleum a year. Zeromax GmbH (Switzerland) was the contractor responsible for project implementation. Its work was supervised by Uzbekneftegaz. This project was completed on May 14, 2013.

Staff comments

1. The Chinese project title is 穆巴列克天然气加工厂合. The Russian project title is «Строительство установки пропан-бутановой смеси для увеличения производства сжиженного газа на УДП «Мубарекский ГПЗ». 2. As this project neared completion, a joint venture (special purpose vehicle) called UzIndoramaGasChemical was established by Uzbekneftegas NHC and Singapore's Indorama Group for continued investment in Mubarek Gas Processing Plant Project. In May 2012, Uzbekneftegaz and Indorama Group (Singapore) established the joint venture. Then, China National Petroleum Corporation (CNPC) signed an MOU with this joint venture in September 2013 in order to participate in the gas chemical project, but its involvement in the project did not become official in 2014. 3. This project is also known as the Mubarek Gas Chemical Complex Project. 4. It is not clear if the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan used the proceeds of the CDB loan to on-lend to UzIndoramaGasChemical. This issue warrants further investigation.