Kazakhstan Development Bank JSC informed about financing the construction of the cement plant in East-Kazakhstan region for a total of $50 m.

/KASE, April 3, 07/ - Kazakhstan Development Bank JSC (Astana), bonds of which are traded in Kazakhstan stock exchange's (KASE) official "A" listing category, spread a press release, which says: Quotation start Kazakhstan Development Bank (SDF Kazyna) opened a financing of project of Kazakhcement LLP on construction of a largest cement plant in RK. In accordance with the contract construction of the cement plant with production capacity of up to 1 m. tones of cement a year is planned in Zharminsk district of East-Kazakhstan region. Total project cost is 75,000,000 USD, including borrowed funds of Kazakhstan Development Fund JSC of 50,000,000 USD. Dry method of cement production, which is currently an advanced method in the world building practice, will be provided on the plant as the most efficient and less costly. At the same time, the dry method of cement production meets high ecologic standard. Limestone, a clay component in he form of loamy soil of Suiktibastau field, is supposed to be used as the primary raw material for production of ready products. Along with ordinary Portland cement of marks 400D0, 400D20 and 500 it is planned to adjust the production of sulphate-resistant and oil-well cement for needs of oil and gas industry. Also for application in areas with any aggressive soil and for large monolithic construction and production of important constructions it is planned to master in issuing cement with special additions. Small quantity of chlorides and presence of siliceous raw materials fields in immediate proximity allow applying the technology of dry production method. In Kazakhstan annual growth rate of cement consumption is 20-25%. At that it is forecasted that such growth rates will remain during next 3-5 years. In the republic currently 5 cement plants are operating: Central Asia Cement JSC (CAC, Karaganda region), Shymkentcement JSC (South-Kazakhstan region), Semecement JSC (East-Kazakhstan region), Vostok-Cement JSC (East-Kazakhstan region) and Sas-Tobe cement plant (SKR). Although the increase of production volumes is implemented by quite fast rates, it does not fully provide needs of the domestic market of the country. Shortage of cement is covered by means of export. Construction of cement plant in East-Kazakhstan region corresponds to the Program of industry development of building materials, products and constructions in RK for years 2005-2014, Plan of measures for realization of State program of housing construction development in RK for years 2005- 2007, as well as main priorities of the Strategy of industrial and innovation development of the Republic of Kazakhstan for years 2003-2015. On the basis of qualitative analysis of the market, the Bank executes investment crediting of building industry projects, which establish production of necessary up-to-date, high-quality building materials. The project with Kazakhcement LLP is already the third construction project of the Bank in the current year. As it was reported before, in March of current year the Bank took part in the opening of plant construction for production of sheet glass by float-method in Kyzylorda (borrowed funds of KDB - 120,300,000 Euro), and also opened financing of project for reconstruction of plant on cellular concrete production in Aktobe (more than 12 million USD). Currently the Bank considers a number of perspective projects on development of building industry in Kazakhstan. Quotation start [2007-04-03]