Garadagh all set to receive ADB loan, Azerbaijan

Garadagh all set to receive ADB loan, Azerbaijan
Published: 30 June 2010

Open joint stock company Garadagh Cement has said that all the necessary details are almost in place for conclusion of a deal of EUR20m loan to be extended by the Asian Development Bank (ADB)

The loan will help GC raise its cement production capacity by around 30% to 1.7Mta. At the same time, the replacement of the existing four wet kilns with a single, more efficient dry kiln

“The loan agreement will be signed as soon as technical issues are solved. It can happen for the next few days,” the Company says.

Signing of the loan agreement and physical allocation of finances depend on the Azerbaijani government: this financing can be conducted only after the government makes an official notification of lack of any objections for this operation.

The loan marks ADB’s first ever private-sector infrastructure investment in Azerbaijan.

Azerbaijan’s economy is one of the fastest growing in the world. Given sustained commercial construction and the government’s wide-ranging infrastructure program, Garadagh Cement estimates medium- to long-term demand to grow 5%-8% per year. With limited domestic production, Azerbaijan is currently forced to import much of its clinker and cement.