President of Uzbekistan approved the FS of a $ 203.9 million 1.2 Mt portland cement plant to be built in Bulakbashi district of Andijan province by September 2019.
Uzbek-Chinese JV Shangfeng-Bridge of Friendship, which is co-owned by Chinese companies Zhejiang Shangfeng Building Materials Co. Ltd. and Tunli, and the local investor Juydam Ta'mir Qurilish, will be engaged in its construction.
Chinese partners will attract over $ 136 million worth of FDIs and loans. These funds will be disbursed to purchase materials, equipment, machines and mechanisms, components of process equipment, devices, vehicles, spare parts, tools, software, development of technical and design documentation.
The construction and assembly works will be financed by a $ 14.9 million loan of UzPromStroyBank, and setting up of all the necessary external infrastructure, including electric and gas networks, roads and railways, water supply will be funded JV’s own resources and additional attracted foreign Investments of 52.7 million dollars.
Sultanabad field (clay), Shirmanbulak III field (limestone) in Andijan province and Kamyshbashi I field (gypsum) in Ferghana province will be the raw material base for the plant.
The company will be exemtped until October 1, 2019 from customs payments for imported materials, machinery and equipment, special vehicles, spare parts, components, tools and process equipment, fuel and lubricants and metal products, as well as from the payment of VAT for works and services provided by non-residents.
Today in Uzbekistan there are five large cement plants: Kyzylkumcement, Akhangarancement, Kuvasaycement, Bekabadcement, Jizzakh cement plant, as well as a number of small enterprises. Their total capacity exceeds 9 million tons per year.
