The company used these funds for the construction of SOCAR’s carbamide plant in the Sumgait city, said Gasimov.

He noted that the agreement on the loan worth 500 million euros for the carbamide plant’s construction has been signed by SOCAR and sent to the Korean side in order to be approved.

The issue on providing the state guarantee will be solved until late January, said the vice president. KEXIM plans to give 249 million euros out of 500 million euros on the basis of its own guarantees by raising the funds of 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 that the loan is allocated for a period of 15 years at an extremely low annual interest rate.

“The obtaining of a loan from these three banks, according to our estimates, should have been completed earlier, but the work was decelerated due to the preparation of the Social and Environmental Impact Assessment and SOCAR signed interim (bridge) agreements with the three banks,” explained the vice president. “As a result, they gave us semiannual loans.”

The cost of the construction project of the carbamide plant in Sumgait totals about 700-750 million euros.

It is expected that SOCAR’s carbamide plant will start producing in the 1Q2018. The main contractor of the plant’s construction is South Korea’s Samsung Engineering, while the licensors are Stamicarbon B.V. (the Netherlands) and Haldor Topsoe (Denmark), and the consultant on project management is Neste Jacobs Oy (Finland).

The plant, which will have sectors producing ammonia, liquid and granulated carbamide, is expected to produce 2,000 tons of carbamide and 1,200 tons of ammonia per day.

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