Turkmenistan secures US$2.5 bln in loans from Japan's and South Korea's export credit banks for PE and PP plant

02-Jun-14

Turkmenistan President Gurbanguly Berdimuhamedov has signed a resolution related to financing of the proposed gas-chemical complex for manufacture of polypropylene (PP) and polyethylene (PE) in Kyyanli village in the Balkan province. The document allows the state bank of foreign economic relations of Turkmenistan (recipient), on behalf of the Government, to conclude an appropriate credit agreement for 10 years with the Japan Bank of International Cooperation (JBIC) and participating financial organizations (lenders). The document also authorizes the recipient bank to conclude an appropriate agreement of loan for 10 years with the Korean export and import bank and participating financial organizations, as well as sign necessary documents related to these agreements and conduct necessary work connected with their commencement and management of the gas-chemical complex. The plants, with capacity to produce 400,000 tpa of ethylene, 81,000 tpa of PP and 386,000 tpa of polyethylene, will be constructed with the help of the Turkmen State Concern for Oil and Gas ‘Turkmengaz’, and a consortium of Japanese and South Korean firms, including Toyo Engineering, LG Engineering and Hyundai Engineering.