950824

Fauji fertilizer

acquires 350 acres in

Port Qasim Estate

MUZAFFAR QURESHI

KARACHI: A lease agreement was signed on Thursday between Port Qasim Authority and Fauji Fertilizer Company (FFC) for 350 acres of land for setting up a DAP-Urea Plant at a cost of over $400 million.

The plant, which will be a joint venture between FFC and Jordan's Mine Phosphate Company will produce 1350 tons DAP fertilizer and 1600 tons Urea fertilizer daily. The plant is expected to come on line in 28 months.

The lease agreement was signed at the PNSC building by Port Qasim Authority Chairman Mohammad Nawaz Tiwana and Managing Director of Fauji Foundation Major General (Rtd) Khalil-ur-Rahman.

The plant will meet 50 percent of the country's DAP requirements. Presently $150 million worth of DAP is imported annually and the proposed plant would help save substantial sums in foreign exchange.

Phosphoric Acid, which is the main raw material to be consumed by the plant, will be imported from Jordan under the joint venture arrangements. The technology for the turnkey plant will be supplied by Kerb of France.

The lease agreement also includes 8 acres of land in the south-western zone of Port Qasim Industrial Estate for storage purpose. The land for the plant will be in Eastern Zone of the area.

The Port Qasim Authority will arrange 10 million gallons of water per day from the nearby Gujju Canal to the plant.

The new project is the first in the country to produce DAF Di-Ammonium Phosphate and it would help save about $100 million in foreign exchange per annum.

The financing of the project, which will have $193 million foreign investment, will be provided by international institutions such as US Exim ($37.5 million), KFW Germany (DM 78.5 million), BNP, France (FFR 267 million) and EDC of Canada (Canada $30.7 million).