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Belarusian cement plants to start utilizing Chinese loans in second half of 2009

20 April 2009

The construction of new cement lines at the three cement plants in Belarus will be launched in second half of 2009. Thus, the plants will start utilizing the Chinese loans then too, BelTA learnt from the department for the industry of construction materials of the Ministry of Architecture and Construction of Belarus.

In March Belarus signed a $142.46mn loan agreement with China Exim Bank on a consumer loan to finance purchasing of the equipment for Krasnoselskstroimaterialy.

In October last year the Government of Belarus and Exim Bank agreed on a $390mn consumer and soft loan for Krichevtsementnoshifer and the Belarusian Cement Works.

The loans for the upgrade of the Belarusian cement plans are pending approval of the State Council of China. They should be considered in one package. The approval is expected in May-June. Once the documents are approved, the contracts signed between the cement plants and Chinese CITIC Group come into force and the credit lines will be opened. A CITIC office in Belarus is slated for opening in second half too.

The work on developing necessary infrastructure, roads, communication networks is being completed now. The companies’ investments, loans of Belarusian banks, financial resources of the innovation fund of the Ministry of Architecture and Construction are being used at this stage.

With a viewing to saturating the domestic market and boosting the export potential of Belarus, the production of cement is projected to be increased up 10 million tonnes a year by 2011. Three technological lines producing 1.8 million tonnes of cement a year will be launched at Krichevtsementnoshifer, Krasnoselskstroimaterialy and Belarusian Cement Works (Kostiukovichi, Mogilev oblast). The total cost of the construction is estimated at $1.134 billion.

MINSK, April 14 (BelTA)