June 30 this year was marked by the signing of loan agreements totalling USD 25.0 million between Indorama Kokand Fertilizers and Chemicals, the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) via video-conferencing.

Deputy Prime Minister - Minister of Investment and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, IFC's Vice President for Latin America and the Caribbean, and Europe and Central Asia G. Baker, EBRD Director of Department for Production and Services Ph. Lusent, Head of World Bank representative offices in Uzbekistan H. Mori,  Executive Director of Indorama Corporation A. Lohia, and other representatives of participants attended the signing ceremony.

IFC and EBRD loans in equal shares are provided to a foreign investor with no using state guarantees of the Republic of Uzbekistan and will be used to finance direct investments of Indorama Kokand Fertilizers and Chemicals to upgrade Kokand Superphosphate Plant.

The plan provides two phases of the project: the first phase provides the launch of the production of water-soluble fertilizers for greenhouse crops, and increase of output of superphosphate from 100 to 350 thousand tons annually. The second phase provides the launch of production of new chemicals, such as dicalcium phosphate, potassium sulfate and sulfuric acid.

During the ceremony, the Government of the Republic of Uzbekistan provided specific thanks for the systemic support by the IFC and the EBRD in reforming the economy, financing of small and medium enterprises, development of corporate sector, privatization of state assets and attraction of investments in the Republic.

The attendees emphasized that the project for modernization of Kokand Superphosphate Plant is an example of effective and transparent privatization of state assets and a demonstration of the success story of a foreign investor in Uzbekistan.

In addition to financing of this project, the IFC also provides advisory support to Indorama in the development and organization of fertilizer distribution systems and technical support for farmers within land quality management.

According to IFC Vice President G. Baker, this project will positively impact the further development of the chemical sector and agriculture in Uzbekistan through the adoption of innovative energy-efficient technologies that will increase the production of high-quality fertilizers to meet the needs of domestic farmers and exports.

"We will continue to assist Uzbekistan in attracting private investments from such companies as Indorama Corporation, which can significantly improve the performance of farmers, create jobs, improve food security in the country and generally improve the investment climate" - said the IFC Vice President.

In turn, the Director of the EBRD Department Ph. Lusent confirmed the Bank’s commitment to further support Uzbekistan through advisory services on the privatization of state-owned enterprises and banks, as well as expanding the EBRD's loan portfolio in the Republic with a focus on the private sector.

For reference: Kokand Superphosphate Plant was established in 1935; the company manufactured mineral fertilizers from phosphorites produced at Tashkura deposit of Kyzylkum Phosphorite Combine. In 2019, Indorama Corporation purchased 96% of the plant's shares.

Indorama Corporation is one of the leading chemical holdings in Asia. It has subsidiaries and affiliates producing a wide range of products, including fertilizers, polymers, polymer raw materials, textiles, fibers and medical gloves in more than 35 countries all over the world employing more than 40,000 people. The company is the largest producer of mineral fertilizers in sub-Saharan Africa, the largest producer of polyolefins in West Africa and the third-largest producer of synthetic gloves in the world. The company is also an integrated manufacturer of cotton and synthetic yarns.