Implementation of the project will allow to produce 4.5 billion cubic meters of natural gas, 400,000 polyethylene and 100,000 tonnes of polypropylene, as well as 100,000 tonnes of pyrolized petroleum. It will create 1,000 new jobs.

Total cost of the project is about US$4 billion. The project will be financed due to resources of founders – KOGAS, Honam and STX Energy and Uzbekneftegaz – for US$1.4 billion, credit resources for US$2.54 billion, attracted on the principle of project financing with limited right of regress and repayment term of 16 years.

Asian Development Bank, Korea Development Bank, China Development Bank, commercial banks of Europe and Asia, like Korea Finance Corporation, ING (Netherlands), KfW, Bayern LB (Germany), Credit Suisse (Switzerland), Nordea and SEK (Sweden) and others, as well as export credit agencies of Korea, Germany and Sweden, which provide insurance coverage for participating banks.

First Deputy Prime Minister and Finance Minister of Uzbekistan Rustam Azimov said that the project, which was under control of the President Islam Karimov from its start, is an example of successful implementation of his policy on rational use of rich raw of Uzbekistan to organize production capacities with high added cost, increasing export potential, cardinal modernization of production base, increasing export potential due to increasing export of ready products and creating on the base of this new high technological production capacities and jobs.

He said that current event marks achievement of important financial stage of the project implementation. I want to underline that total sum of loan financing, attracted within the project, made up over US$2.5 billion. This resources are provided by leading international financial institutions and commercial banks without guarantees of the government, which is evidence about trust of international business circles and financial institutes to structural reforms in Uzbekistan and their assurance to successful implementation of large-scale high technologic projects, sustainable and dynamic development of Uzbekistan under management of President Islam Karimov, macroeconomic stability and favourable investment climate, Azimov said.

KOGAS CEO Choo Kang Soo said: “Today’s signing ceremony means not only completion of preparation of Surgil project and launch of its implementation, as well as it gives “green light” for wide-scale attraction of large investments into high-technologic spheres, expansion of partnership between Korea and Uzbekistan. I am sure that Surgil project will be great and successful enterprise which will serve next generation and mark new stage of development of Uzbekistan to others in the world.”

Ambassador Extraordinary and Plenipotentiary of South Korea in Uzbekistan Jun Daewan said that the event took place due to active support of the leaders of two states – President of Uzbekistan Islam Karimov and President of Korea Lee Myung-bak.

He said that construction of Ustyurt gas chemical complex has been largest joint project since two states established diplomatic relations in 1992. He said that in future it will be historic project – spring-board for construction of high industrial state in Uzbekistan. The project, being model for development, and uniting Korean technologies and Uzbek natural resources, will attract attention of all world, he added.

Jun Daewan stated that this year the sides mark the 20th anniversary of diplomatic relations between South Korea and Uzbekistan and it will be beginning of new stage of cooperation between two states.

Lee Kwang In, director-general of Korean Export-Import Bank (KEXIM), said that despite global financial crisis and situation in international financial markets, KEXIM provided US$1 billion to the project along with other partners such as ADB, Korean Credit Insurance Corporation (K-SURE), Hermes Export-Credit Agency (Germany), EKN (Sweden) and other financial institutions.

“I am delighted that KEXIM accepted significant role in the project as financial catalyst and supported expanding mutual beneficial economic cooperation between Uzbekistan and Korea. I wish prosperity to Uzbekistan led by President Islam Karimov,” he said.

K-SURE executive director Park Sang Hee said that joint efforts of all participants allowed successfully to complete it, despite unfavouravble situation in global financial markets. He said that the project was initiated as model for economic cooperation between Uzbekistan and Korea and it will serve as foundation for many upcoming projects. Success of the project will mean strengthening of economic and political relations between two states on long-term strategic base, he added.

Representative of the ADB Thomas Minnich said that the project demonstrates wide opportunities of organization of financing of such new projects, which will allow Uzbekistan to become leading country in oil and gas industry in the region and all-sufficient country, which posses own raw base and industrial capacities for ensuring sustainable economic growth. He said that thousands of young people of Uzbekistan will have opportunity to study and get jobs and Uzbekistan will become center of gas-chemical industry development.