TASHKENT (TCA) — Uzbekistan’s government will allocate US $75 million to complete the construction of a fiberglass plant on the grounds of Uzglasseiden joint venture in Tashkent in 2014.

The project is included in the national investment program for 2010. According to most optimistic forecasts, the issue about the project’s financing may be solved in the first half of 2010, after which it is planned to find the main contractor for the completion of the construction, which will expectedly take 3-5 years.

The Uzglasseiden JV with the statutory fund of 5.9 million Deutsch Marks was established in 2000 by Swiss company Rovitex (20 percent), German Preiss-Daimler Consulting (30 percent), and Uzbek Onyx (50 percent). In early 2001, Rovitex acquired 30 percent of the German company’s share, increasing Rovitex’s share holding to 50 percent.

Back in 2002, the JV was planning to launch the plant for fiberglass production in Tashkent worth 86.5 million DM. The full capacity of the plant was estimated at 9,400 tons of fiberglass per year.

The financing of the project should be implemented using the JV’s authorized capital, a loan worth approximately 58 million DM issued by a German bank, and a loan worth 10.2 million DM provided by a foreign partner.

However, due to financial problems and technological shortcomings, the construction was frozen.

In summer 2007 the Uzbek Industrial and Construction Bank (Uzpromstroibank), the main creditor of the joint venture, initiated a bankruptcy procedure against Uzglasseiden. Later, the joint venture was passed over to Uzpromstroibank.

Source timesca.com