Uzbekistan withdraws from the agreement with International Petroleum Investment Co (IPIC) of UAE

The Uzbek government terminates the agreement with International Petroleum Investment Co (IPIC) of the United Arab Emirates to build a chemical complex in Navoi region, reports KazTAG. The reasons for termination of the agreement, reportedly was that the parties were unable to reach the figures that have been determined by the conditions of the document, so it was decided to proceed with the divorce.


Recall that in 2010 the company "Uzkimesanoat" and "International Petroleum Investment Company" agreed to build a complex for the production of ammonia and urea in the Navoi region worth $ 1.34 billion.


It was assumed that the annual capacity of the plant will be 900 thousand tons of ammonia and 1 million tons of urea. Parties were required to have an equal share in the authorized capital. A company from the United Arab Emirates also had to export at world prices at least 70% of the joint venture created by urea.


In turn, the Uzbek side intended to provide construction necessary for the functioning of the complex production of ammonia and urea external infrastructure, including power, roads and railways, to the agreed point connection.


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The project was to be financed by a loan from a consortium of foreign banks and financial institutions in the $ 804 million equity IPIC - $ 268 million and own funds and borrowings Uzbekistan by $ 268 million


World media monitoring