AGMK to construct new smelting furnace at copper smelting plant
15/09/2014 11:03
AGMK to construct new smelting furnace at copper smelting plant
15/09/2014 11:03
Tashkent, Uzbekistan (UzDaily.com) -- Almalyk Mining and Metallurgy Combine (AGMK) implements an investment project “Construction of new smelting furnace at copper smelting plant” with the cost of US$97.7 million.
The Government of Uzbekistan issued a resolution “On measures on implementation of the investment project “Construction of new smelting furnace at copper smelting plant” on 4 September 2014.
The document was adopted to modernize production capacities of AGMK, introduce modern energy efficient technologies of copper production, ensure rational use of energy consumption and improve ecologic situation in Almalyk.
According to the resolution, AGMK developed feasibility study of the project with total cost of capital investments for US$97.7 million and the document underwent expertise at authorized bodies.
In the result of tender, AGMK and Engineering Dobersek GmbH (Germany) signed an agreement on construction of new smelting furnace at copper smelting plant with total cost of US$89.6 million. Within the contract, it is expected that local producers will supply goods, works or services.
The project will be financed due to own resources of AGMK for US$34.6 million, loan of Fund for Reconstruction and Development of Uzbekistan (FRDU) – US$29 million and loan of Ipoteka Bank – US$34.1 million, refinanced due to credit of Kommerzbank (Germany) at insurance coverage of Euler Hermes (Germany).
FRDU will provide the loan for seven years, including three year grace period, under interest rate of 4% APR, including margin of refinancing bank (Ipoteka Bank) at the size of 1% APR.
The loan of Ipoteka Bank will be provided for 10 years, including 2.5 year grace period, the resolution said.
According to the document, new smelting furnace at copper smelting plant will be commissioned in September 2016.
The document said that AGMK is a debtor and executive body, responsible for implementation of the project, targeted and effective use of attracted loans.
The expenses related with repayment of attracted loans and its interests, will be covered due to own resources of AGMK, including resources of special investment accounts.
The goods, works and services, delivered by local enterprises, within the project will shipped without crossing the state customs bodies and so they will not undergo customs registration.
The Government also provided customs and tax preferences to AGMK and Engineering Dobersek GmbH within implementation of the investment project.
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