SOCAR to sign a long-term deal on financing of carbamide plant to the end of year

Baku. 15 October. REPORT.AZ/ By the end of the year long-term agreement with South Korea's Eximbank on financing of a carbamide plant in Sumgait will be signed. Report informs, Vice-president of the State Oil Company of Azerbaijan Republic (SOCAR) for Economic Affairs, Suleyman Gasimov told journalists.

Now work on signing contract is underway.According to him, at signing of contract the guarantee is the Ministry of Finance.Previous loans for a period of 6 months was given to purchase equipment for the plant.The amount of the credit from Eximbank of 150 mln USD.Construction of a carbamide plant is realized in the framework of the "State Program on reliable provision of population with food products in Azerbaijan in 2008-2015", approved by the relevant decree of the Azerbaijani President.

For this purpose, land area of 24 hectares was purchased, located in the enjoyment of the Production Association "Azerkimya", and 19 October 2011, the groundbreaking ceremony was held for the plant with participation of President of Azerbaijan Ilham Aliyev. In order to implement the project for the construction of a carbamide plant a contract was signed on March 13, 2013 between SOCAR and South Korea's Samsung Engineering Co.Ltd for engineering, procurement and construction. As part of the contract and after completion of all necessary tests Samsung Engineering Co. Ltd. will surrender SOCAR's plant completely ready for operation. Under the contract Samsung Engineering Co. Ltd. will conduct construction and installation work, appropriate testing and staff training to address problems that may arise during the operation of the plant. The plant will be commissioned in 2017. The plant, which will consist of sections for the production of ammonia, liquid and granular urea, will produce 2000 tonnes of urea per day. The cost of the project excluding taxes is 500 mln Euros