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VTB-Azerbaijan Bank allocates credit to AzMeCo company

26 April 2011 09:57 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. VTB-Azerbaijan Bank and AzMeCo company have signed $30 mln-credit contract.

Banks told APA that according to contract, methanol production plant with 720 000 tons of annual capacity is expected to construct in Baku at the expense of allocated funds.

VTB-Azerbaijanâ€™s President Oleq S. Crasnojon and AzMeCoâ€™s President Nizami Piriyev appreciated this cooperation and noted the importance of methanol production for country economy and for ecologically clean energy production.

Note that, VTB Azerbaijan is subsidiary organization of Russiaâ€™s VTB Bank. AzMeCo is private company on methanol production.

Remind that, last year, EBRD and AzMeCo signed $120 mln credit contract and agreement of intent on construction of methanol plant and intermediate gas-producing 5 additional plants. Total cost of the project is $1.1 bn. 33% of funds will be allocated by EBRD, the rest by other banks.

Total cost of construction of methanol plant during first stage is $300 mln. As to other plants, the second will be $400 mln, the third - $250 mln, the 4th - $30 mln, the 5th - $100 mln, the sixth.

Note that, AzMeCo company is operator of construction and exploitation of plant with 720 000 tons of annual capacity. The new methanol plant will produce 450 tons of acetic acid, 500 tons dimethyl ether, 80 tons of formaldehyde, 40 tons of melmin. Along with EBRD, AIB, EDC and Black Sea Trade and Development Bank are financing the project.

Remind that, EBRD will allocate funds in two tranches. Note that, methanol is especially used in agriculture.