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China Development Bank to issue loan for US$110m to construction of Uzbek cement plant
Tashkent, Uzbekistan (UzDaily.com) --
The China Development Bank (CDB) will allocate a loan for US$110 million to Rahnamo-Nur, an Uzbek-American joint venture, to build the cement plant in Karakalpakstan, General Manager of Uzstroymateriali Akbar Mukhiddinov said on Friday.
He said that Rahnamo-Nur received license for use of fields. He added that the US bank JP Morgan has issued a guarantee for the Chinese loan. The loan agreement between the venture and the CDB will be signed in March or April 2013.
China National Technical Import & Export Corporation (CNTIC) will be the general contractor for construction of the plant. The contract with the Chinese company will be signed within a month, Mukhitdinov said. The construction works will be conducted in two years.
The Rahnamo-Nur Uzbek-American Joint Venture started construction of the cement plant in Karakalpakstan in 2009. The designed capacity of the plant is 1 million tonnes a year. About 75% stake in the venture is owned by American Platineum Partners, and 25 percent -- by the Uzbek side. The project cost is US$128 million.
Uzbekistan has six cement plants with a total capacity of about 7 million tonnes. In 2012, cement production in Uzbekistan increased by 1.3% to 6.8 million tonnes compared to 2011.
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