The resolution was adopted to implement the resolution of the presidential resolution “On programme on primary measures on expanding volume of production and launch of production of new competitive products” and in order to increase the volume of supply of phosphorite raw materials for production of phosphorus fertilizers.

According to the governmental resolution, NGMK and Germany’s Engineering Dobersek GmbH signed a contract on designing technologic part, supply of equipment, materials, spare parts, assembly and start-and-adjustment works on “turn-key” basis for 19.96 million euros with the implementation of the investment project.

The resolution said that the project cost is US$59.92 million. NGMK will allocate US$24.92 million to project implementation.

People’s Bank of Uzbekistan will allocate loan for US$35 million. The document said that it will issue 33 billion soums due to funds, received to increase charter capital of the bank. Other part will be issued due to resources of accumulative pension system for seven years with two years of grace period. The interest rate is 10% APR.

The resolution said that the loan will be repaid due to own resources of NGMK, received from general economic activity.

The document entrusted NGMK to open financing for designing of technologic part of the project and start to pace orders for equipment, which requires long time for production in line with the contract with German firm before approval of feasibility study of the project.

The combine was entrusted to redevelop feasibility study of the project till 1 March 2013 based on project documentations with specification of equipment, produced by German company, and submit it to the Government for consideration.