Signing of the documents is the main stage of the project, which will allow Uz-Kor Gas Chemical and its contractors to start construction of the complex. This is the first example of implementation of large-scale project based on long-term project financing for Uzbekistan and largest, currently, project financing in oil-chemical industry in the CIS area.

Signed documents envisage allocation of financing with limited regress right for the project sponsors and the loan is issued for 16 years.

Loan financing includes direct loans by Export-Import Bank of Korea, China Development Bank, Asian Development Bank, Fund for Reconstruction and Development of Uzbekistan, National Bank of Uzbekistan for US$1.175 billion. In addition, nine leading commercial banks of Europe and Asia will allocate US$1.365 billion under insurance coverage Korean and European export-credit agencies (ECA).

Creditors under ECA coverage are such credit institutes as Korea Finance Corporation, Korea Development bank, ING bank, Bayern LB, Credit Suisse, KfW, Nordea, SEK and Siemens Bank.

Uz-Kor Gas Chemical is a project company. Uz-Kor Gas Chemical was founded by Uzbek and Korean companies in May 2008 to develop, finance, construct and exploitation of integrated gas and oil processing project in Ustyurt region of Uzbekistan.

Uzbekneftegaz owns 50% stake in the joint venture, while Uz-Kor Gas Chemical Investment holds 50% share. Korea Gas Corporation (KOGAS), Honam Petrochemical and STX Energy are Korean founders of the venture.

Main resource base of the project is gas and gas condensate, extracted at Surgil field, license for development of which was presented to Uz-Kor Gas Chemical.

Uz-Kor Gas Chemical will produce and sell gas in market of Uzbekistan and produce gas chemical goods: polyethylene of high density, polypropylene and pyrolized gas and mazut for internal and external markets.

It is expected that construction of Ustyurt Gas Chemical Complex will start in June 2012 and it will be commissioned in early 2016.

ING served as exclusive financial advisor of the project, Vinson & Elkins was advisor on legal issues, while Norton Rose was legal consultant of creditors.

Uz-Kor GasChemical will allocate US$1.41 billion to finance project and the Fund for Reconstruction and Development of Uzbekistan will issue loan for US$100 million.

In particular, Uzbekneftegaz national holding company will invest US$705.43 million, including property, while Kor-Uz Gas Chemical Investment Ltd. – US$705.43 million.

First Deputy Prime Minister and Finance Minister of Uzbekistan Rustam Azimov stated that the project is important for economy of Uzbekistan. He said that the project is serous foundation for transfer of Uzbekistan to “knowledge economy”.

He said that the project will help Uzbekistan to increase exports and create raw base for other industries. He said that the complex will supply raw materials to such industries as chemistry, machinery and semi-conductors, as well as other high technology industries of economy.

He said that the complex will annually process 4.5 billion cubic meters of gas and produce 4 billion tank gas, 400,000 polyethylene and 100,000 tonnes of polypropylene, as well as 100,000 tonnes of pyrolized petroleum.

The resource base of the project is Surgil, Vostochniy Berdah-Uchsay and Severniy Berdah fields. Surgil field is the largest of them. Its reserves, according to the Uzbek side, make up about 120 billion cubic meters of gas.