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NEWS AND EVENTS
December 24, 2014
Uzbekistan to construct rubber products plant in Angren
President of Uzbekistan signed a resolution “On measures on organization of construction of rubber products plant in the territory of free industrial zone Angren” on 4 December 2014.

The document was adopted in order to organize local production of agriculture and automobile tires, conveyor belts, and meet demands of high technological enterprises with local competitive products, create new jobs, ensure employment and growth of income.

The resolution said that feasibility study of investment project “Organization of production of conveyor belt, agriculture and automobile tires at the territory of the special industrial zone Angren” was approved. In the result of the direct talks between Directorate on construction of rubber products plant” of Uzkimyosanoat signed a contract with Poly Technologies Inc. (China) on construction of plant, which will have capacity on production of 100,000 meters of conveyor belt, 200,000 units agriculture tires and 3,000 units of automobile tires a year on “turn-key” bases for US$183.96 million.

Uzavtosanoat reached agreement with General Motors (USA) on using locally-made tires at cars, produced by GM Uzbekistan, if the products pass certification and laboratory tests in line with international standards and requirements of General Motors.

Uzbek leader agreed with proposal of the Ministry of Finance, State Competition Committee, Uzkimyosanoat, Uzavtosanoat, Almalyk Mining and Metallurgy Combine (AGMK)and Navoi Mining and Metallurgy Combine (NGMK) on increasing charter capital of the Directorate of the project to US$30 million. The share of Uzkimyosanoat will be 50%, Uzavtosanoat – 30%, AGMK and NGMK – 10% each.

The resolution said that the Fund for Reconstruction and Development of Uzbekistan (FRDU) signed a loan for US$27.6 million to finance the project. The loan is allocated to pay 15% advanced payment of the contract, which will be refinanced by Asaka Bank. The loan issued for 10 years with three-year grace period with interest rate of 2.25% APR, including refinancing margin at the size of 0.25% APR.

The project will be also financed due to long-term foreign loans for US$156.36 million, refinanced by Asaka Bank with refinancing margin at the size of 0.25% APR. The loans will be paid to pay 85% sum of the contract.

The project will be financed due to resources of the founders of the Directorate of the project for US$30 million to pay interest rates and commissions to service preferential loans of foreign creditors, FRDU and Asaka Bank, as well as to form turnover capital, etc.

Asaka Bank in cooperation with the Ministry of Foreign Economic Relations, Investment and Trade, Ministry of Finance and Uzkimyosanoat was entrusted to work with foreign banks and other financial institutions to attract preferential long-term loans to co-finance the project.

Uzkimyosanoat was set as an executive body, which is responsible for targeted and efficient use of loans and credits, as well as implementation of the project.

The Directorate of the project is a debtor on loans, attracted to finance construction of the project. The Directorate will repay debts and credits, commissions and other expenses on services of the loans due to own resources and attracted funds of the Fund for Development and Support of organization of chemical industry under Uzkimyosanoat.

President of Uzbekistan Islam Karimov allowed the Directorate and Uzkimyosanoat in cooperation with Poly Technologies Inc. conduct construction works in parallel with development of the project documentation will 1 January 2016.

The Directorate was allowed to attract international consultants to determine compliance of the project solutions to requirements of GM on safety and security of exploitation of the objects, as well as maintenance and technical supervision.

The Directorate with the FRDU and Asaka Bank was allowed to open financing up to approval feasibility study of the project on import contracts, which passed expertise of the Ministry of Foreign Economic Relations, Investment and Trade of Uzbekistan, and contracts, signed with local suppliers and contractors.

Uzbek leader exempted the project participants from payment of customs payments for imported equipment and materials, as well as on some taxes and payments.

(Source: UzDaily.com)


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