December 13, 2011
The Bangladeshi government has signed a commercial credit agreement with China to set up a BDT54.09-billion (US$703-million) Shahjalal fertiliser factory in Sylhet.
Chairman of the state-owned Bangladesh Chemical Industries Corporation (BCIC) M Golam Rabbani and chairman of China National COMPLANT Import and Export Corporation Ltd Zou Baozhong, vice president Li Fengwei and chairman of Chengda Cao Guang signed the agreement on behalf of their respective sides.
Industries Minister Dilip Barua, Industries Secretary KH Masud Siddiqui, Chinese Ambassador in Dhaka Zhang Xianyi and seniors officials of the embassy and the Industries Ministry were present at the signing ceremony at BCIC office on Sunday (Dec 11).
China will provide US$560 million for the project while the Bangladeshi government US$20.19 million.
Of the Chinese fund, US$235 million will come as soft loans while the remaining US$325 million as suppliers' credit.
As per the agreement, the Chinese company will complete the construction work on the proposed factory within 38 months, said an Industry Ministry release.
The government has taken up the China-funded urea fertiliser factory project in Sylhet amid the growing demand for fertiliser, which is expected to cut dependence on imports to a large extent.
Shahjalal fertiliser factory is one of three new fertiliser factories, which the government plans to set up with a total annual production capacity of 577,500 tonnes. It will have the daily production capacity of 1,760 tonnes while the annual production capacity of 580,800 tonnes.
Meanwhile, some 1,000 tonnes of ammonia will be produced each day in the factory with the annual capacity of 330,000 tonnes of ammonia.
On December 1, the government approved the project for setting up Shahjalal fertilizer factory in Fenchuganj, Sylhet.
Earlier, the planning ministry in a statement said the Chinese government and China Exim Bank would provide BDT39.86 billion (US$517.3 million) for the project as a concession loan with an interest rate of 2% and the amount has to be repaid in 20 years.