China Development Bank provides $78 million loan for Huaxin Gayur Cement Plant Construction Project (Linked to Record ID#53588, #53976)

Project narrative

In September 2011, Huaxin Cement Co., Ltd. (a Chinese state-owned enterprise) and Gayur LLC (a Tajik industrial company) signed a cooperation (project investment) agreement to jointly build a new dry-process cement production line with an annual output of 1 million tons. In December 2012, China Development Bank (CDB) provided a $78 million foreign exchange loan to LLC JV "Huaxin Gayur Cement" (设的亚湾公司 or ООО СП “Хуаксин Гаюр Цемент”) — a special purpose vehicle and the joint venture of China’s Huaxin Cement Co., Ltd. (75% ownership stake) and Tajikistan’s Gayur LLC (25% ownership stake) — for the Huaxin Gayur Cement Plant Construction Project (华新水泥塔吉克斯坦亚湾工 or Хуаксин Гаюр Цемент). The loan carried a 7-year maturity but its interest rate is unknown. The purpose of the project was to construct a cement plant in Yavan district and Khatlon region with the capacity to produce 1 million to 1.2 million tons of cement per year. The total cost of the project was $94.5 million and it was financed with a mix of debt and equity. The $78 million CDB loan is captured via Record ID#72490. The equity contribution of Huaxin Cement Co., Ltd. is captured via Record ID#53976. Huaxin Equipment Engineering. Co., Ltd. (华新装备工程有限公司), a subsidiary of Huaxin Cement Co., Ltd, was the equipment supplier and engineering, procurement, and construction (EPC) contractor responsible for project implementation. Construction began on September 15, 2011, and production began on August 29, 2013. The cement plant reportedly plant created 1000 jobs for locals.