The construction of the mineral fertilisers terminal at the Ust-Luga seaport will not be completed until the second half of the year 2004. This is according to Valery Izrailit, the general director of the Ust-Luga company.
Mr. Izrailit said that, 'The completion of this construction will not be delayed by more than 6 months. The terminal will be completed by the end of navigation in 2004'. Earlier, the completion of this construction was planned before the end of 2003.
Mr. Izrailit said that the construction had been suspended, pending the signing of a quadripartite agreement between his company, the administration of the Leningrad Region, the Ministry of Transportation and that of Railroads to define mutual guarantees and obligations pertaining to the project. Recently, the agreement was signed.
The first phase of the terminal is worth USD 30 million. Its annual transshipping capacity will be up to 2.5 million tonnes of mineral fertilisers. Earlier, the attainment of the full annual capacity of the port, 5 million tonnes, was planned for 2004-2005. The construction of the first phase of the terminal is financed by the Russian Bank for Development and the principal stockholders, including the Roskhimterminal, Acron of the city of Novgorod the Great, and the Silvinit company of the city of Perm. All three are Russia's largest producers of mineral fertilisers. They have already completed future contracts with the Ust-Luga company for exporting up to 1.5 million tonnes of fertilisers annually.
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