Govt signs deal to set up biggest fertiliser factory

FE Team | Published: October 24, 2018 21:41:32

The government on Wednesday signed an agreement with Chinese and Japanese companies to build the country's biggest-ever urea fertiliser factory in Narsingdi, reports UNB
The annual production capacity of the factory will be 0.92 million tonnes.
Mitsubishi Heavy Industries Ltd. (MHI), Japan senior vice president Hajime Nagano and China National Chemical Engineering No 7 Construction Co Ltd (CC-7) China Chief Executive Officer Wang Da Lin and Bangladesh Chemical Industries Corporation (BCIC) Chairman Shah Md Aminul Haq signed the agreement on behalf of their respective sides.
Industries Minister Amir Hossain Amu and Japanese Ambassador in Dhaka Hiroyasu Izumi witnessed the signing that took place at a city hotel.
The project titled 'Ghorasal Polash Urea Fertiliser Project (GPUFP)' will be implemented at the place of the existing two very old fertiliser factories -- Urea Fertiliser Factory Ltd (UFFL) and Polash Urea Fertiliser Factory Ltd (PUFFL).
Once implemented, the factory will produce 2,800 tonnes of Granular Urea a day, which is about three times higher than that of the existing two fertiliser factories.
This project will be implemented through 'Bidder Financing' process, spending Tk 104.6 billion.
Of the amount, the government will provide Tk 18.44 billion while the rest Tk 86.16 billion will come as commercial loan.
Officials said the project will be implemented maintaining the highest standard and using world-class environment-friendly green technology.
Earlier, Prime Minister Sheikh Hasina had directed the industries ministry to build a modern urea fertiliser factory replacing the two old ones.
Later, this month, the Executive Committee of the National Economic Council (Ecnec) approved a proposal for setting up Ghorashal Palash Urea Fertiliser Factory which will be completed by 2022.
Currently, Shahjalal Fertiliser Factory in Fenchuganj of Sylhet is the country's biggest fertiliser factory with an annual production capacity of 0.58 million tonnes.