Loans from international banks to be involved in construction of Carbamide Plant in Azerbaijan

Baku, 5 September. REPORT.AZ/ Talks on allocation of a government-guaranteed loan for construction of the Carbamide Plant of the State Oil Company of Azerbaijan Republic (SOCAR) in Sumgayit, are nearing the completion.

Director of the Carbamide Plant, Khayal Jafarov told Report.

The plant’s director said that besides the South Korea’s Eximbank, also several international commercial banks will take part in financing of the project. Kh.Jafarov added that names of the commercial banks will be announced in a month. He stated that at present, negotiations are underway on terms of the contract.

"September and October are expected to be more active period of talks. We hope the negotiations will complete by the end of October, early November. Loan of 500 mln. EUR will be guaranteed by the state", said the plant’s director.

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.