China Development Bank provides a $100 million loan to Chem-Plus LLP for the production of caustic soda in the Chemical Park Taraz Special Economic Zone

Project narrative

In June 2017, China Development Bank (CDB) signed a $100 million loan agreement with Chem-Plus LLP to finance the production of caustic soda. The loan carried the following terms: a maturity of 10 years and an interest of 4.7% per annum. The project had a total cost of ₸47.6 billion KZT, approximately $142.8 million in 2017. The project, which was located in Chemical Park Taraz Special Economic Zone in the Shu District of the Jambyl Region, sought to construct a caustic soda line at the Formulation Complex, intended for the production and sale of plant protection products (herbicides) for the Kazakhstani market. It was to be capable of producing 40,000 tons. The commissioning was planned for 2020. Construction had begun by 2017, but it had been suspended until a decision was made on the further implementation of the project's fourth start-up glyphosate complex. A consortium led by Kazakhstani company Construction Corporation Kulager LLP was awarded the engineering, procurement, and construction (EPC) contract for the project on November 20, 2017. In addition to Kulager LLP, the consortium featured German company Chemieanlagenbau Chemnitz GmbH, Kazakhstani company Promstroyproekt Design Institute LLP and Kazakhstani company Aral Service LLP. Construction was ongoing as of December 31, 2018. The complex was ultimately commissioned in January 2019, but it appeared that the caustic soda line had not gone into production at that time.