INDO EGYPTION FERTILIZER COMPANY SAE
a joint venture of
Indian Farmers Fertiliser Cooperative Ltd., India
and
El Nasr Mining Company , Egypt
May 2006
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About IFFCO
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Indian Farmers Fertiliser Cooperative Limited (IFFCO)
incorporated as a multistate cooperative society in India is
the largest fertiliser producer in India.
Owned by more than 38000 cooperative socities
representing about 55 million farmers.
Annual Production of 6.4 million tones fertilisers in the year
2005-06.
Annual Sales of 8.2 million tones in the year 2005-06
20% market share of nitrogenous and 25% market share of
phosphatic fertilisers in India.
Annual turnover for the year ending March 2006 is over
US$ 2.2 billion and profit of US$ 107 million
Networth as on 31st March 2006 US$ 790 million
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About IFFCO
Major Joint Ventures
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Industries Chemique du Senegal (ICS), Senegal
Indian Potash Limited, India
IFFCO-Tokio General Insurance Company Ltd , India
Oman-India Fertiliser Company, Oman
National Commodity and Derivative Exchange Limited, India
National Collateral Management Services Ltd, India
Godavari Fertilisers and Chemicals Ltd., India
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About ENMC
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El Nasr Mining Company (ENMC) is the largest mining
company in Egypt under Metallurgical Industries Holding
Company.
ENMC is the main miner, supplier and exporter of rock
phosphate in Egypt.
Owns Rock phosphates mines in eastern and western
Sabaiya deserts besides other minerals all over Egypt.
Owns Hamerawein port at Red Sea.
Exports about 1.5 million tones of rock phosphate yearly in
addition to supplies in domestic market.
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Project Highlights
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Location
: Eastern desert at Sabaiya
near Edfu, Aswan, Egypt
adjacent to Rock Phosphate
mines/ works of ENMC
Main Product
: Phosphoric Acid 1500 tones
per day (P2O5)
Intermediate Product : Sulphuric Acid 4500
tones per day
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Project Highlights
KEY REQUIREMENTS
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Rock Phosphate : About 2 million tones per
year
Sulphur
: 0.5 million tones per year
Production of Phosphoric Acid : 1.0 million
tones (Bulk) per year
Water
: 15000 cubic meters per day
Power
: Captive Generation of
25 MW
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Project Highlights
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Capital Investment
Debt equity ration
Shareholding Pattern
: 325 million US$
70 :30
: IFFCO/Affiliates 76%
ENMC 24%
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Project Highlights
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Port facility required for import of Sulphur and
Export of Phosphoric Acid
Railway Net work required to be improved for
transportation of Sulphur and phosphoric Acid
from/ to port
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Strategic Partnership
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ENMC shall supply about 2 million tones of rock
phosphate to the project from its mines at Sebaiya
on long term basis
IFFCO will off-take the entire phosphoric acid
production for exports.
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Pre-Project Mile Stones
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Conceptulisation for investment
First Visit to Egypt
Identification of the JV Partner
MOU with El Nasr Mining Co.
Approval for Investment in
Project under Private Free Zone by
General Authority for Investment &
Free Zones (GAFI)
In Principle allocation of Land
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December 2004
December 2004
January 2005
April,2005
May,2005
: May 2005
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Pre-Project Mile Stones
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Signing of Share Holders Agreement
Incorporation of JV Company
First Board Meeting &
Share Holders Meeting
EIA by CAPSCU, Cairo University
Environmental Clearance
IFC appointed as finance facilitator
and consultant
IFC team visited the site
Testing of Rock Phosphates
Established Head Office of the
Company in Cairo
: October 2005
:November 2005
:November 2005
:November 2005
: January 2006
: February 2006
: March 2006
: March 2006
: March 2006
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Pre-Project Mile Stones
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Appointed Ardaman Associates for
Basic design of Gypsum disposal site
Geo Technical Study by by Dr. Fathi
M.Abdrabbo, Alexandria University
Technical Study Report by PDIL
Logistics Study by CAPSCU,
Cairo University
: March 2006
: April 2006
: April 2006
: May 2006
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Schedule Pre-Project Activities
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Social Impact Assessment as per
IFC guide lines by Centre for Environmental
Researchand Studies (CERS)
Cairo University
: June 2006
Finalisation of Plant Layout
: June 2006
EIA for Crushing Unit of ENMC by
CERS, Cairo University
: July 2006
Finalisation of Logistics Plan
: June 2006
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Schedule Pre-Project Activities
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Finalisation of consultant for EPC
Contract
Signing of financing agreements
Financial Closure
Zero date of the Project
Completion of the Project
: October 2006
:September 06
:September 06
: 01/10/1006
: 31/09/2009
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Benefits of the Project to Egypt
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Foreign direct investment of about US$ 325 million
Net foreign exchange inflow of over US$ 2 billion over 20
years of plant operation.
Substantial value addition to Egyptian rock phosphate
reserves.
Placing Egypt on the international Phosphoric acid Map.
Boost to local economy.
Boost to development of ancilliary industries to support the
plant.
Direct employment of local population
Substantial indirect employment for plant construction ,
transportation and support functions.
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Areas of Concern
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Railways/ roadways upgradation to facilitate
transportation of phosphoric acid to the port and
Sulphur from the port to the plant .
Port upgradation for additional solid and liquid
handling requirements.
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Suggestions
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Upgradation of Railways on Fast Track
Upgradation of Ports on Fast Track
Land Acquisiton – on Fast Track
Creation of a Pool of Consultants in GAFI in the areas of
Legal, Taxation, Finance, Human Resource etc.
Defining a Nodal Officer in important Ministries for
coordination with GAFI / Investors.
Creation of Business Centre type facilities in GAFI for new
Investors.
Pursuance of Strategic Investors abroad.
Simplification of procedures for establishment of Offices,
Telephone Connections, Work Permits, Residence Visas etc.
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