Acron signs 48.8B Russian rubles insurance contract for its Russian ammonia complex, including all risks associated with construction of new 700,000 tonnes/year project
August 26, 2013
– Acron has signed a package coinsurance contract with VTB Insurance, SOGAZ and Ingosstrakh for a total of over RUB 48.8 billion. The contract provides coverage for the Group’s ammonia complex (Units 2 and Unit 3), as well as for all risks associated with construction and installation operations for the Ammonia-4 project, which has a design capacity of 700,000 tonnes per annum.
The contract insures the facilities under construction, company property located at the site, and vehicles and machinery against breakage. It also insures the Group’s financial risks in the event of delayed commissioning and civil liability for damage to life, health or property of third parties, environmental and terrorism-related risks. The insurance contract covers the whole term of construction and installation operations under the Ammonia-4 project and the period of post-commissioning warranty maintenance.
Insuring the most expensive and hazardous operations and obtaining coverage against construction and assembly risks in the course of implementing large-scale investment projects is an important component of Acron Group’s risk management system and a core element in protecting the Group’s assets. In 2012, RUB 53 billion in coverage was obtained for construction of the Talitsky mine from a pool of Russian and international insurance companies. The latest insurance contract is a comprehensive solution, unique for the Russian market, which provides coverage both for the facilities under construction and existing facilities against six risk types, in view of the special features of the whole Acron ammonia production site, until 2016. Risk reinsurance is provided by a pool of European and Asian insurers lead by Allianz CGS, which reacted favourable to the quality of the Ammonia-4 design solution provided by Haldor Topsoe A/S (Denmark), Alvigo and Novgorodsky GIAP (a company of Acron Group).