New gas chemical plant costs to exceed $4 billion. Uzbekistan has approved funding mechanism for the construction of Ustyurt Gas Chemical Complex. The President has signed a relevant document. Ustyurt Gas Chemical Complex will be built at Surgil deposit will be at the expense of contributions of the founders in the authorized capital of joint venture Uz-Kor Gas Chemical. In particular, Uzbekneftegaz will invest $705.43 million (17.5% of the total estimated project cost), including the property, while Kor-Uz Gas Chemical Investment Ltd. (Korea) provides $705.43 million in foreign direct investment. In addition, Uz-Kor Gas Chemical attracts loans from international financial institutions, foreign commercial banks under guarantees and insurance coverage of the Asian Development Bank, Export-Import Bank of Korea, Korea Trade Insurance Corporation and other export-import agencies and international financial institutions under the project financing in the amount of $2.520 billion (62.5% of the total estimated cost of the project). The project will also be funded by the Reconstruction and Development Fund of Uzbekistan, which will provide a loan of $100 million (2.5% of the total estimated cost of the project). The preliminary feasibility study for the project has been recently approved. As part of this document, Uz-Kor Gas Chemical has entered into contract on a turnkey basis with foreign companies: GS Engineering & Construction Corp., Samsung Engineering & Construction Ltd., Hyundai Engineering Co. (South Korea), for the construction of technological zones of Ustyurt Gas Chemical Complex and Uzbekneftegaz for design, supply of materials and equipment, construction of facilities at Surgil field and separate infrastructure objects. For the accelerated implementation of the project, the national holding company together with Uz-Kor Gas Chemical will develop in the fourth quarter of 2012 the feasibility study and submit it for approval to the Cabinet of Ministers. According to preliminary data, the gas-chemical complex will annually produce up to 400,000 tons of polyethylene and 100,000 tons of polypropylene. This will be the largest such complex in the CIS area. The future modern production will be fully staffed by local professionals. Until March 1, 2012 the Ministry of Higher and Secondary Special Education, Ministry of Economy and Uzbekneftegaz will negotiate with Uz-Kor Gas Chemical the educational programs for professionals for 2012-2016. At the same time, starting this academic year a special department of Tashkent Institute of Chemical Technology located at Kungrad Soda Plant will begin training students for the joint venture. (Source: Ut.uz)