Press Release

OPEC Fund co-finances manufacturing project in Uzbekistan

52/2005 April 21, 2005, Vienna, Austria

The OPEC Fund for International Development today signed a US$3.3 million loan agreement with Uzarctech of Uzbekistan to help finance the establishment of a factory for the manufacture of welding equipment and machinery in the capital, Tashkent. UzArctech is wholly owned by Archtec, a leading Turkish manufacturer of welding consumables and equipment.

At present, the availability of quality welding materials in Uzbekistan, as well as in surrounding countries, is inadequate. As welding is a key process in virtually every type of industry, this shortfall has serious consequences for the development of the sector.

Using state-of-the-art technology, the Uzarctech plant will have the capacity to produce 16,000 tons of welding electrodes, 3,000 tons of welding wire and 1,800 units of welding machines annually, for both domestic consumption and export

Domestic activities will focus on supplying industrial enterprises directly through Uzarctech’s own sales and marketing networks. Products will be exported to Russia and other eastern European countries, as well as to the Middle East.

It is envisaged that the new enterprise will provide considerable stimulus to the expansion of industrial manufacturing and construction activity in the country. In addition, it will generate some 200 new jobs, together with hundreds more indirectly through the anticipated growth in manufacturing.

This is the Fund’s second private sector operation in Uzbekistan. The first was a US$5 million line of credit to support the development of small and medium size enterprises. The Fund is also active in Uzbekistan’s public sector, having approved two loans for projects in the transportation and water supply sectors. An agreement for the encouragement and protection of investment between the OPEC Fund and the government of Uzbekistan came into force in July 2001.

Today’s agreement was signed in Vienna on behalf of Uzarctech by Mr. Celil Layiktez, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.