Chinese Government provides RMB 50 million interest-free loan -- via ETCA -- for supply and installment of equipment at velvet factory (Linked to Record ID#69310)

Chinese Government provides RMB 50 million interest-free loan -- via ETCA -- for supply and installment of equipment at velvet factory In 2006, the Chinese Government agreed to issue an RMB 50 million interest-free loan (captured via Record ID#69309), and an RMB 40 million grant (captured in Record ID#69310) to the Government of Turkmenistan for the supply and installation of technological equipment and accessories at a velvet factory under construction in Ruhabat District.

The agreement was made in accordance with a long-term Economic and Technical Cooperation Agreement (ETCA) between the Turkmen and Chinese governments.

Shanxi Zhongxu International Trade Industrial Co., Ltd (Chinese title is ' 山西中旭') was the contractor responsible for implementation.

The factory was planned to be commissioned in October 2007, and expected to have a production capacity of 1 million meters of velvet annually.

The project was completed on October 22, 2008 in a ceremony that was attended by President of Turkmenistan, Gurbanguly Berdimuhamedov.

The factory provided employment for 550 people, and its velvet production capacity was expected to meet domestic and foreign demand. The total cost of the project was $28.75 million.

In addition to financial contributions from the Chinese Government, the oil and gas industry of Turkmenistan provided $12.6 million.