DUSHNBE, September 17, Asia-Plus -- In replay to a statement by Tojikcement (Dushanbe cement plant) administration, top managers of open joint-stock-company (OJSC) Sangtuda-1 HPS has released a letter, claiming that the Dushanbe cement plant is to blame for the Sangtuda-1 cement reserves’ falling to the critical level.  

Tojikcement is the only producer of cement in Tajikistan, and therefore, when taking a decision on construction of the Sangtuda-1 power plant, the Tajik government has pledged to supply cement to the site for the power station from this plant, the letter signed by Rakhmetulla Alzhanov, the director general of OJSC Sangtuda-1 HPS, said.    

According to him, the site’s daily requirements in cement  are 500-700 tons, “and realizing hard financial situation at the Dushanbe cement plant the company has made prepayments in full volume.”  Moreover, the company has funded the plant’s extension since November 2006, according to the letter.   

 “Thus, in November 2006, we provided $3 million for purchasing equipment from China for shifting the plant form natural gas to coal; however, the equipment has not yet been introduced into operation,” said the letter, “In December 2006, Tojikcement applied to the company for a new $1 million loan, and it has not yet repaid it.”  

In the letter, Alzhanov reminded that the government of Tajikistan and the administration of Russia’s Unified Energy System (RAO YeES), which funds the Sangtuda-1 hydroelectricity project, this year have made a decision to put the first generator of the Sangtuda-1 station into operation in December 2007.   “To ensure implementation of this program the sides have endorsed the financing plan for 52.65 million somonis and the cement supplies schedule, under which 188,336 tons of cement should be delivered to the site,” the letter said.

OJSC Sangtuda-1 HPS has made prepayments for cement for the period until December 2007 in an amount of 41,426,508 somonis and provided a loan of 7,910,160 somonis under the separate agreement for clearing off Tojikcement’s debt to the Czech Republic, according to the letter.  

“As far as the cement prices are concerned, it is a concerted action, taking into consideration the fact that loaning Tojikcement OJSC Sangtuda-1 HPS has not demanded loan interest, while the annual rate of loan interest on the financial market makes 30 percent,” said the letter, “Therefore the Dushanbe cement plant should realize cement at concerted prices.”  

We will recall that the Dushanbe cement plant top managers say the plant has consistently fulfilled its obligations on supplying cement to the Sangtuda-1.

 “The Dushanbe cement plant has consistently fulfilled its obligations on supplying cement to the Sangtuda-1,” Rajabgul Haqnazarova, the deputy director general of Tojikcement (the Dushanbe cement plant), said in an interview with Asia-Plus.

            According to her, the plant has daily, including Friday, delivered the planned 600-700 tons of cement to the site for the Sangtuda-1 hydroelectric power station (HPS).  Moreover, 4,000 tons of cement are currently in the storages on the site.     

            “Therefore, spoiling delivery of cement is out of the question,” said Haqnazarova , “The plant realizes cement to the Sangtuda-1 station at the rate of 278 somonis per one ton of Portlandcement and 280 somonis per one ton of sulfate-resistant cement, while the market prices of cement fluctuates from 850 to 1,200 somonis per one ton.”  

“In the beginning of this year already, the Ministry of Economic Development and Trade (MoEDT) set the cement prices at the rate of 382.50 somonis per one ton for the Portland cement and 402.90 somonis for the sulfate-resistant cement,” said the deputy director general.  “However, meeting the Sangtuda-1 administration halfway, we have considerably lowered the prices.”   

In answer to this, open joint-stock company (OJSC) Santuda-1 HPS has pledged itself to purchase cement from the plant by prepayment.  “”Thus, they have to pay us $1.5 million for the first half-year of 2007,” said Haqnazarova, “We planned to use these funds to modernize our plant in order to increase the volume of production and clear off our debts.”  “However, despite the agreement, Sangtuda-1 HPS has fulfilled only 46.7 percent of its financial obligations, while our enterprise has reached some 70 percent of its target on supplying cement to the Sangtuda-1 station.”    

The Tojikcement official noted that the cement plant now works primarily for the OJSC Sangtuda-1 HPS.  “We realize our products at very low price, while their side does not pay for cement at the proper time,” said Haqnazarova, “Therefore, the plant is incurring serious losses and this makes us raise the cement prices.” 

According to her, all complaints of administration of the Sangtuda-1 HPS about supply delays are absolutely unfounded.  “Thereby, they just try to shift off the responsibility for backlog of work on to us,” the Tojikcement deputy director said.