3 European banks to allocate 249 mln EUR for construction of Carbamide plant in Sumgayit

Baku. 5 November. REPORT.AZ/ Talks with 3 prestigious banks of Europe and South Korean "Eximbank" (KEXIM) on state-guaranteed long-term loan for construction of Carbamide plant of the State Oil Company of Azerbaijan Republic (SOCAR) in Sumgayit is expected to finish by year-end.

Report informs, the plant's director Khayal Jafarov told reporters.

According to him, they are "Deutsche Bank" (Germany), "Societe Generale" (France) and "UniCredit" (Italy and Germany), banks: "Initially, the project was financed by funds allocated from the state budget. For this purpose 205 mln AZN allocated from the budget. In 2015 a decision was made to involve international loans."

Kh. Jafarov said, 201 mln EUR loan allocated by foreign banks. Negotiations are underway for another 300 mln EUR. Thus, total of 500 mln EUR loan is planned.

51% of the loan (251 mln EUR) will be allocated from KEXIM and 249 mln EUR from European banks. The loan will be guaranteed by KEXIM.

Notably, 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 President of Azerbaijan.

For this purpose, purchased the land area of 24 hectares, located in the enjoyment of the Production Association "Azerkimya", and the groundbreaking ceremony for the plant with the participation of Azerbaijani President Ilham Aliyev was held on October 19, 2011. In order to implement the project for the construction of a carbamide plant on March 13, 2013 between SOCAR and South Korea's Samsung Engineering Co.Ltd a contract was signed for engineering, procurement and construction. As part of the contract and after completion of all necessary tests Samsung Engineering Co. Ltd. surrender plant of SOCAR completely ready for operation. As part of 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, which will consist of sections for the production of ammonia, liquid and granulated urea, will produce 2,000 tons of urea per day.