BankMuscat has agreed to two loans totalling more than OMR25.77 million for Oman Cement Company, which is looking to finance a series of upcoming modernisation projects and revamp its ageing plant.
The first loan worth OMR14.45 million will be used to finance the company’s kiln upgrade project and pollution control equipment improvements. Back in March, it was announced that two Chinese companies would carry out this work.
The second loan for OMR11.47 million will pay off an existing loan of the same amount the company currently has with Bank Sohar. A statement released to the Muscat Securities Market explains that these loans will hopefully reduce the cost of financing its projects.
The CFO of Oman Cement, Mr Deepak Dikshit said that the loan to pay off the other loan with Bank Sohar, will be paid back in semi-annual instalments over five years with a moratorium period of six months.
He added that the loan for the modernisation works has a two-year moratorium and is also payable in semi-annual instalments over a period of effectively seven years.
With an expected completion date of February 2012, CNBM International Engineering will be contracted to carry out the OMR11.15 million contract to modernise the 29 year old plant. The goal is to extend the plant’s life by another 25 years and to increase its capacity from 2000 tpd to 2700 tpd.
Oman Cement Company also signed OMR3.3 million deal with Sino Environment Engineering Company to modernise the company's pollution control systems to ensure that emissions fall below 10 mg per nm3 with work expected to be completed by the end of January 2012.
Read the article online at: https://www.worldcement.com/africa-middle-east/30092011/oman_cement_company_secures_loans_for_plant_modernisation_projects/