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- Ethiopia: Derba Midroc Cement Plant
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Nigeria: Indorama Fertilizer Plant - Phase II
Nigeria has relied heavily on imported fertilizers to meet 80% of its national demand. This situation is set to change with the Indorama Fertilizer Plant, which will transform Nigeria from a net importer of fertilizer to a major producer and exporter.
The Project entails
- (i) construction and operation of a 1.4M metric TPA Nitrogenous Fertilizer Complex comprising a 2,300 metric TPD ammonia plant and a 4,000 metric TPD granulated urea plant and supporting infrastructure and utilities (the Plant) at the Eleme petrochemicals complex site, Eleme, Port Harcourt, Nigeria;
- (ii) construction of a 84 km pipeline from the gas supplier’s processing facilities to the plant (the pipeline) for supply of the feedstock gas that will run adjacent to two existing pipelines within an existing right of way (RoW).
Located east of Port Harcourt, Rivers State, the plant will transform 1.4 metric tons per annum of natural gas into urea fertilizer annually that will be sold on the local market and also exported to neighboring countries such as Benin and Ghana, and to South Africa, the USA, Brazil, the UK and India.
The Bank’s Investment
Of the total project cost of US $1.2 billion, the African Development Bank extended an 11.5-year senior loan of US $100 million and assisted with sourcing a US $800-million debt facility from development financial institutions and commercial lenders. The Bank’s intervention follows a previous loan extended to Indorama Fertilizer in 2013 for the commissioning of another urea fertilizer plant with a production capacity of 1.4 million tons per annum.
Economic and social benefits
The completion and exploitation of the plant in 2016, helped turn Nigeria from a net fertilizer importer to a self-sufficient producer, and now a net exporter of fertilizer. In 2017, 700,000 tons of urea were exported to West Africa and North and South American markets. Production from the new plant will predominantly target export markets. The project will also address the problem of inadequate fertilizer utilization, which is considered one of the principal constraints to agricultural growth and development in Nigeria, and the entire African continent.