President of Belarus Alexander Lukashenko is on a working visit to Dobrush today, reports BELTA correspondent.
The Head of State will be briefed on the implementation of the investment project for the technical re-equipment of the Dobrush Paper Mill "Hero of Labour". Construction of a plant for the production of coated and uncoated cardboard with a capacity of 200 thousand tons of cardboard per year began here back in 2012, but the work was never completed. The facility has been mothballed.
Last year, the Council of Ministers approved a scheme for the completion of the project in separate commissioning complexes with the involvement of specialized organizations as contractors for each area. The plant is planned to be commissioned in 2020, and in 2022 it is expected to reach its design capacity.
How it all began
Initially, it was expected that the investment project for the re-equipment of the mill would be completed in 2015. However, this was not done, as the Chinese general contractor, Xuan Yuan company, repeatedly missed deadlines due to financing problems. In 2018, the contract with it was terminated.
The total cost of the plant was almost $350 million. Since the start of the project, the general contractor had been paid over $265 million. The remaining credit funds (about $83 million) remained unutilised and, at the request of the Ministry of Finance, were offset by the China Development Bank against the principal debt repayment.
How much money is needed to launch the plant
The plant is currently about 95% complete. An additional $83 million is required to finalise the work. Half of this amount must be paid to the Austrian company Andritz, which is responsible for commissioning the core technology. The remaining funds will be allocated to the launch of the energy complex, wastewater treatment facilities, water supply systems, general construction and design works, and the procurement of additional equipment.
Alexander Lukashenko instructed to examine the necessity of state support for several problematic investment projects, including the Dobrush plant, at a relevant meeting in December last year. He emphasised that funds should not be squandered and that guarantees are needed to ensure that enterprises do not seek assistance again after some time.
Why this project is so important
Bellesbumprom Concern explained that the commissioning of this plant will significantly increase the production volume of import-substituting cardboard products, which can be used to create a wide range of paper packaging.
"Given the absence of manufacturers of similar high-quality cardboard in Belarus and Russia, a significant increase in its processing for the needs of the food, light, medical, perfumery, and printing industries should be expected," the concern noted. "Therefore, the production of cardboard in Belarus primarily presents great opportunities for the development of new manufacturing facilities specialising in the production of eco-friendly packaging, and secondly, it represents a significant contribution to increasing exports from Belarus's pulp and paper industry."