The funds will help Indorama Kokand to expand its annual output of fertilisers threefold to 350,000 tonnes
The EBRD has granted loan to modernise fertiliser facility in Uzbekistan. (Credit: The European Bank for Reconstruction and Development)
The European Bank for Reconstruction and Development (EBRD) has granted a loan of $12.5m for JSC Indorama Kokand Fertilizers and Chemicals (Indorama Kokand) in Uzbekistan.
The EBRD funding will be used for the development and modernisation programme of Indorama Kokand’s facility, and the financing will also be supported by the same parallel loan from World Bank Group member International Finance Corporation (IFC).
Indorama Kokand will use the funds to expand its annual output of fertilisers threefold to 350,000 tonnes, as well as to install energy-efficient equipment at the production facility.
The expansion of the facility will allow agricultural enterprises and farms to enhance their cultivation practices
The modernisation of Indorama Kokand facility will help agricultural enterprises and farms in Uzbekistan and Central Asia, specifically the Fergana Valley, to enhance their cultivation practices and the planning of harvests.
Earlier called the Kukon Superphosphate Factory, the state-owned company was purchased by in 2019 by Indorama Holdings, a wholly-owned subsidiary of Singapore-based Indorama Corporation.
Indorama Corporation group vice chairman Amit Lohia said: “We are proud of our roots in Uzbekistan since 2010 and are excited about our first fertiliser investment in the country. Our goal is to supply Uzbekistan’s fast-growing agricultural sector with high-quality phosphate-based fertilisers in the near future.”
The increased output of phosphate fertilisers by the company will allow expanding the growth of the agricultural sector in Uzbekistan.
Indorama Kokand will use advanced technologies used during the modernisation process, which will serve as a benchmark for other enterprises in the country and across Central Asia.
Uzbekistan Investments and Foreign Trade Minister and Deputy Prime Minister Sardor Umurzakov said: “The privatisation of the Kukon Superphosphate Factory is part of the government of Uzbekistan’s plans to restructure the chemicals sector and increase its competitiveness.
“This project demonstrates our commitment to implementing the privatisation effectively and transparently to attract responsible and experienced investors like Indorama, who can take these enterprises to the next level of development.”
In January this year, the EBRD agreed to provide $90m in financing to agricultural commodity processor Sodrugestvo Group.