Seoul to host meeting to attract a loan for Carbamide Plant construction

Baku. 14 September. REPORT.AZ/ A meeting with potential creditors will be held in Seoul (South Korea) next week to attract state-guaranteed, long-term loan for financing the construction project of the Carbamide Plant of the State Oil Company of Azerbaijan Republic (SOCAR) in Sumgayit.

Report informs the Carbamide Plant Director Khayal Jafarov told reporters in Sumgayit.

According to the plant director, representatives of the Azerbaijani Ministry of Finance and SOCAR will attend in the meeting: 'In addition to Korea Eximbank (KEXIM), 3 prestigious European banks will take part in the financing. Talks are being held in this regard. The banks will be named in near future. The talks are continuing actively during last 3-4 months. We hope that attraction of 500 mln EUR state-guaranteed, long-term loan will be completed in October-November'.

Kh.Jafarov noted that 51% (251 mln EUR) of funds will be attracted from Korea Eximbank: 'Korea Eximbank will guarantee the remaining 49%. Funds will be involved from leading European banks under that guarantee'.

Notably, Carbamide Plant construction project is being carried out within the State Program on reliable provision of Azerbaijani population with food products (2008-2015 years), which was approved under the relevant order of the Azerbaijani President. For this purpose, 24 hectares of land, which is in use of SOCAR 'Azərikimya' Production Union has been allocated and a groundbreaking ceremony of the plant held with the participation of President Ilham Aliyev on December 19, 2011. On March 13, 2013, SOCAR and Samsung Engineering Co. Ltd. (South Korea) have signed design, procurement and construction contract to build the carbamide production plant.

Within the contract, Samsung Engineering company will deliver the enterprise to the State Oil Company fully ready for use and on turkey basis after completing the construction and carrying out all the necessary tests. The Korean company will carry out construction-installation works of the plant as well as relevant tests and organize special trainings for the employees to eliminate any problems, which may arise during operation of the plant. The plant will consist of ammonia, liquid and granular carbamide production units, 2 000 tons of carbamide will be produced daily.

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