Uzbekistan receives Chinese loan to build soda plant

The Industrial and Commercial Bank of China /ICBC/ has lent Uzbekistan US$ 29.23 million to finance the completion of Uzbekistan“s Kungrad soda plant, a source with the Industrial and Construction Ba…

The Industrial and Commercial Bank of China /ICBC/ has lent Uzbekistan US$ 29.23 million to finance the completion of Uzbekistan“s Kungrad soda plant, a source with the Industrial and Construction Bank of Uzbekistan reported in August. The Industrial and Construction Bank of Uzbekistan was the Uzbek party, which signed the lending agreement with the ICBC. The ten-year loan has a two-year grace period, an interest rate of 3.79%, and is secured by the Chinese Export Credit Insurance Corporation and guaranteed by the Uzbek government. As reported earlier China“s Citic International Cooperation has signed a US$ 32.3-million contract with the Uzbek state chemical company Uzkhimprom to complete the Kungrad soda plant in Uzbekistan“s autonomous republic of Karakalpakstan. The US$ 60-million plant, whose capacity is designed at 100,000 tonnes of soda ash, is expected to start production in late 2004. Resources for the plant will be extracted from the salt deposit Barsakelmes and the lime deposit Jamansay in Karakalpakstan. The construction of the Kungrad soda plant began in 1996, and a consortium of unspecified German companies have revised the project several times since then.