(MENAFN - AzerNews) By Kamila Aliyeva
Uzbekistan and China signed the agreement on the joint construction of a complex for the production of polyvinyl chloride (PVC), caustic soda and methanol.
The complex will be built on the basis of the Uzbek enterprise Navoiazot in the largest industrial city of the central part of Uzbekistan -- Navoi.
It was signed during the visit of the head of the Uzbek government to China, Uzbek media outlets reported.
A consortium of Chinese companies China CAMC Engineering and HQC Shanghai will act as contractor of the project.
Chinese Export-Import Bank issued a preferential purchasing loan which will be the main source of financing.
The project worth $439.8 million is realized on an area of 33 hectares and is designed for 36 months. At the moment, construction work is in full swing, the main part of which is planned to be completed by the end of this year.
Following its commissioning, the complex will produce 100,000 tons of PVC, 75,000 tons of caustic soda and 300,000 tons of methanol per year.
China has become one of Uzbekistan's key economic partners. The country has proven to be a prime source of foreign investment and loans, not just for Uzbekistan but for all the Central Asian states. However, Beijing has already helped fund most of the major projects that link Central Asia to China, including roads, railway lines, and oil and gas pipelines.
Chinese companies helped to construct the Pap-Angren railway, a 123-kilometer-long line from eastern Uzbekistan to an area not far from the capital, Tashkent, a $1.9 billion project financed in part by China's Export-Import Bank.
China has also helped fund and construct three gas pipelines from Turkmenistan to China that run through Uzbekistan. And Beijing has signed contracts with Tashkent for Uzbekistan to eventually supply up to 10 billion cubic meters of gas annually through those pipelines.