23-07-2012 10:46 Belarus
China to provide $296.3m and CNY328.6m to Dobrush Paper Factory
Some $296.3 million and CNY328.6 million will be invested in the technical upgrade project of Dobrush Paper Factory Geroy Truda affiliated with the Management Company of the Belorusskie Oboi Holding Company, the press service of the Belarusian government told BelTA commenting on Council of Ministers’ Resolution No. 656 of 17 July 2012 “Concerning implementation of credit agreements with China’s State Development Bank.
In line with the Resolution, BPS-Sberbank will act as the agent bank. China’s credit in US dollars and yuans is provided as part of the credit agreements between China’s State Development Bank and the Government of Belarus as of 27 April 2012. The money will be used to carry out technical retooling and start producing uncoated and coated cardboard at Dobrush Paper Factory Geroy Truda.
In line with the Resolution, the documents related to the credit are to be prepared and signed by Chairman of the Board of BPS-Sberbank or his deputies upon letters of attorney issued by the Finance Ministry of Belarus. The Finance Ministry will pay for the credit using the funds of the national budget earmarked for servicing and paying external public debt.
Bellesbumprom Concern stands as a guarantor of loan payment by the Management Company of the Belorusskie Oboi Holding Company. The debt repayment will be done from 1 January 2016 till 31 December 2025, according to the schedule approved by the Finance Ministry.
Technical upgrade of Dobrush Paper Factory Geroy Truda is one of the major investment projects in Belarus. The plans are to construct a complex to produce three-layer coated and uncoated cardboard. The complex will include a plant to manufacture bleached chemical-thermomechanical pulp, a CHP plant, forestry stock exchange, cardboard mill, waste treatment facilities and a water treatment plant. The complex will manufacture 200,000 tonnes of products per year. It will produce cardboard for the manufacture of packaging for the pharmaceutical, cosmetic and food industries. Bleached chemical-thermomechanical pulp will be used as a feed stock.
Dobrush Paper Factory Geroy Truda, affiliated with the Management Company of the Belorusskie Oboi Holding Company, is one of the largest enterprises of the paper industry of Belarus. It produces about 90 types of products.