Tk 39.87b Chinese loan for Shahjalal Fertilizer Factory
Monday, 12 December 2011
FE Report
China will provide Bangladesh Tk 39.87 billion loan for building the proposed Shahjalal Fertilizer Factory in Sylhet.
State-owned Bangladesh Chemical Industries Corporation (BCIC) signed a financial agreement with China Sunday to build the factory. The signing ceremony was held at BCIC conference room in the city.
BCIC chairman Md. Golam Rabbani and Chairman of Zou Baozhong, vice-president Li Fengwei of Complete Plant Import and Export Corporation Limited (COMPLANT), the Chinese agency and chairman of Chengda Cao Guang signed the agreement on behalf of reseptive sides, says an Industries Ministry press release.
Industries Minister Dilip Barua, Industries Secretary K H Masud Siqqui, Ambassador of China to Bangladesh Zhang Xianyi were present at the ceremony including high officials from the both sides.
The remaining cost of the Tk 54.90 billion project will be funded by the Bangladesh government. EXIM Bank of China will disburse the loan on behalf of Chinese government which has to be repaid in 20 years.
According to the agreement, COMPLANT will handover the operational factory to BCIC by next 38 months from the agreement signing day.
State-owned BCIC has seven fertiliser factories across the country, apart from the multinational Karnaphuli Fertiliser Company Ltd (Kafco).
Shahjalal Fertiliser Factory will be one of the three new fertiliser factories, which the government plans to set up with an annual production capacity of 577,500 metric tonnes. The two other proposed factories are North West Fertiliser Factory Limited and Bhola Fertiliser Factory Limited.
North-West Fertiliser Factory will be set up in Sirajganj. The Chinese government has also expressed its eagerness to provide financial support for setting it up.
Shahjalal Fertiliser Factory will have a production capacity of 1760 metric tonnes of urea and 1000 metric tones of Ammonia per day.
Bangladesh signed a framework agreement with China for the construction of Shahjalal Fertiliser Factory during the Prime Minister's visit to China in March last year.