CDB provides $3.3 million loan for a cement plant construction project
Commitment amount
$ 3802715.9181692135
Adjusted commitment amount
$ 3802715.92
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Uzbekistan
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
In 2017, China Development Bank provided a $3.3 million loan to National Bank for Foreign Economic Activity of Uzbekistan for the construction of a cement factory in Samarkand region with the capacity to produce 500-700 tons of cement a day. National Bank for Foreign Economic Activity of Uzbekistan used the proceeds of this loan to on-lend to another entity. Multiple Chinese EPC contractors were responsible for project implementation, including China Gezhouba Group Overseas Investment Co., Ltd., China Gezhouba Group Cement Co., Ltd. and Gansu Hengya Cement Co., Ltd. After an alleged misallocation of funds, the Chinese firm's EPC turnkey contract faced possible termination. It then obtained legal counsel (Kosta Legal), but the dispute was ultimately resolved by 2019. Construction still stalled with Uzbekistan receiving more funds for the project up through 2020. On December 15th, 2021, the commencement ceremony for the start of construction occurred.
Number of official sources
1
Number of total sources
5
Details
Cofinanced
No
Direct receiving agencies [Type]
National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) [State-owned Bank]
Implementing agencies [Type]
National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) [State-owned Bank]