Talks on long-term loans for construction of a carbamide plant in Azerbaijan will be completed by mid-year - UPDATED

Baku. 12 April. REPORT.AZ/ Negotiations with Korea Eximbank on raising long-term loans under the state guarantees to finance the construction in Sumgait of a carbamide plant of State Oil Company of Azerbaijan Republic (SOCAR) will start in late April-early May. Report was told by the Director of the carbamide plant Khayal Safarov.

Kh.Safarov noted that representatives of Eximbank is expected to visit Azerbaijan in the next two weeks.

"After that, we plan to start negotiations. Also sent an appeal about getting government guarantees. The process is expected to last 3-4 months and the state guarantees and funds to complete the financing of the project will be gained by mid-year", he added.

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As for the loan amount, the plant's director pointed out that the total cost is not yet clarified.

"Cost of a contract for engineering, supply and construction was signed with Samsung Engineering makes 498 million. Euro. The initial amount of the loan from the Eximbank is equal to 150 mln. Euro. Considering these funds, taxes, construction, infrastructure works (gas, water), the estimated cost of the project calculated in the amount of 910-920 mln. Euro. About 200 mln. Euros of this amount will be deducted the relevant taxes. This is a rough estimate. Engineering work has been completed, work is underway on the design of pipelines and aqueducts. Their exact cost is not yet known", said Kh.Jafarov.

The director added that works are on schedule. According to him, after the completion of mechanical works will start the commissioning works. They will last for 3-4 months, and then at the beginning of 2018 the plant will be put into operation.