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Uzbek Reconstruction and Development Fund allocates $ 22 mln to metallurgical plant

21 March 2014

The Uzbek Reconstruction and Development Fund delivered a loan worth $ 22 million for a wire rod production project to the Uzbek Metallurgical Plant (Uzmetkombinat, Bekabad city, Tashkent region), a representative of the country's financial circles told Trend on March 17.

It was previously reported that the project worth $ 30 million envisages 8-10 millimeter wire rod production at a '300' mill of the rolling shop with the installation of a wire block with a design capacity of 100,000 wire rod annually.

Wire rod production is planned to be launched in late 2014.
Uzmetkombinat is the only ferrous metallurgy plant in Central Asia working with scrap metal. It was commissioned in 1956 and accounts for 90 percent of steel products in the country. Previously, it recycled scrap metal delivered from all republics of Central Asia. Currently, scrap metal, as well as raw materials purchased outside the country are used upon tolling conditions.

The plant is designed to produce 790,000 tons of steel, 760,000 tons of rolled metal.

Currently, Uzmetkombinat is implementing a program of development and modernization of production worth $ 134.7 million for the period until 2016. The plant intends to implement three investment projects worth $ 45 million by late 2014.

It is expected that the program implementation will increase the plant's design capacity for steel production by 13.3 percent - up to 850,000 tons, processed scrap metal - almost 1.8 times to 670,000 tons, as well as reduce energy costs by 20 percent by 2016.

Uzmetkombinat increased steel production by 1.3 percent up to 746,200 tons, rolled ferrous metals - by 1.1 percent to 718,000 tons in 2013 compared to 2012.

The Uzbek Reconstruction and Development Fund was established in 2006 to finance and co-finance the projects included in the state investment program. The founder is the government through the Finance Ministry.

Currently, the Uzbek Reconstruction and Development Fund's authorized capital was brought to $ 15 billion.

The fund is exempt from all taxes, levies, duties and mandatory contributions to the state target funds, except for the single social payment.

The fund's loans are allocated for a period of seven-15 years, including a grace period from three to five years. The rate is 2.25 percent.

The fund allocated $809.5 million to implement 34 projects included in the state investment program in 2013. The total volume of lending 37 projects is planned to hit $935.6 million in 2014.

In particular, the fund will allocate money to implement the projects in such areas power engineering, oil and chemical spheres, transport, tourism, etc.

The official exchange rate is 2.250.36 soums/$ 1.