Cabinet of Ministers of Uzbekistan
Tashkent, Uzbekistan (UzDaily.com) --
The Government of Uzbekistan will allocate US$75 million for completion of the construction of the plant on production of glass fiber at the base of UzGlassZaiden JV.
Ministry of Economy of Uzbekistan in cooperation with the Ministry of Finance are currently considering issue on allocating budget funds for construction of the plant in 2014.
The Government can solve issue of the project financing in the first half of 2010 and after that it is planned to recruit general contractor for completion of the construction. The constriction will take 3-5 years with keeping current capacities.
UzGlassZaiden JV was founded in 2000 by the Swiss Rovitex (20% share), German Preiss-Daimler consulting (30%) and Onix (50%). In early 2001, Rovitex acquired 30% stake of German company to raise its share to 50%.
The venture should commission plant on production of glass fiber in Tashkent in 2002 with the capacity of 9,400 tonnes a year. The project should be financed due to charter capital, loans of German banks and foreign partners.
The financial difficulties, unformed charter capital and technological shortages hindered to launch of the plant. In 2007, Uzpromstroybank, the main creditor of the venture, initiated bankruptcy procedures against UzGlassZaiden JV and in the result, it acquired the assets of the venture.