Azerbaijan’s state oil company SOCAR has already used 220 million euros of a 500 million euros loan, allocated by the Export-Import Bank of South Korea (KEXIM), SOCAR vice president on economic issues, Suleyman Gasimov told reporters in Baku.
SOCAR used these funds for construction of a carbamide plant in the Sumgait city, said Gasimov.
He noted that the agreement on the 500 million euros loan has been signed by SOCAR and sent to the Korean side in order to be approved.
KEXIM plans to give 249 million euros of the 500 million euros loan by raising funds from Germany’s Deutsche Bank, Italy’s UniCredit and France’s Societe General, and will give the remaining 251 million euros directly from its own funds, added Gasimov.
He said the loan is allocated for a period of 15 years at an extremely low annual interest rate.
The project to construct the carbamide plant in Sumgait costs about 700-750 million euros.
The plant is expected to start production in 1Q18.
The main contractor of the plant’s construction is South Korea’s Samsung Engineering, while the licensors are Stamicarbon B.V. of the Netherlands and Haldor Topsoe of Denmark. The consultant on project management is Neste Jacobs Oy of Finland.
The SOCAR plant is expected to produce 2,000 tons of carbamide and 1,200 tons of ammonia per day.