Kor UNG Investments could not attract loans for construction of gas-filling compressor stations
06/06/2014 13:51
Kor UNG Investments could not attract loans for construction of gas-filling compressor stations
06/06/2014 13:51
Tashkent, Uzbekistan (UzDaily.com) -- Kor UNG Investments, an Uzbek-South Korean joint venture, could not attract loans to construct 60 gas-filling compressor stations in Uzbekistan, RIA Novosti reported quoting the source in the joint venture.
The enterprise could not reach agreement on attracting resources for US$50 million, the source said. In particular, the venture held talks with UzOmanCapital investment fund and Korean banks.
The Uzbek side is planning to create consortium from Uzbek banks to finance the project, but high cost of the project creates pressure to profitability and repayment of investments, the source said. He said that the Korean partners want to make decision on further participation in the project till the end of June.
Kor UNG Investments was founded in May 2011. Avtogaztaminot (part of Uzbekneftegaz, Uzbekistan) and Kogas, Kolon, Kwangshin, EngineTech (South Korea) are founders of the venture.
The venture was planning to construct 50 gas-filling compressor stations by the end of 2014 for US$42.8 million. The project was corrected and it was planned to build 60 gas-filling compressor stations for US$105 million (including 30 in 2014).
Currently, the venture is building four gas-filling compressor stations. The project will be financed due to own resources of the founders and attracted loans.
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