President of Uzbekistan Shavkat Mirziyoyev signed a resolution on measures to organize construction of a cement plant in Bulakbashi district of Andijan region.

The document was adopted in order to increase production of modern building materials, which are highly demanded in domestic and foreign markets, develop new types of products, ensure further expansion of export potential, and create new jobs in Andijan region.

According to the resolution, the capacity of the new plant with a total cost of US$203.9 million will be 1.2 million tonnes of portland cement a year. In process of cement production, the new plant will use alternative types of fuel and energy resources, including coal.

Joint venture, Shangfeng-Bridge of Friendship, was created to realize the projects. The founders of the joint venture are the Chinese companies Zhejiang Shangfeng Building Materials Co. Ltd and Tunli, as well as Juydam Ta’mir Qurilish from Uzbekistan.

The project will be financed due foreign direct investments and loans for US$136.3 million, a loan of Uzpromstroybank, allocated to Shangfeng-Bridge of Friendship, for US$14.9 million, own funds of Shangfeng-Bridge of Friendship and foreign loans, attracted by foreign investors, in the amount of US$52.7 million.

President instructed to issue license for the right to use subsoil plots for clay extraction at the Sultanabad deposit and limestone at the Shirmanbulakskoye III deposit located in the Andijan region, as well as gypsum at the Kamyshbashinsky I field in the Ferghana region to Shangfeng-Bridge of Friendship without holding public tender, on the basis of direct negotiations.

Uzbek leader granted tax and customs privileges to Shangfeng-Bridge of Friendship Ltd. within the framework of the implementation of the investment project.