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Japan and China sign deal to build Bangladesh’s biggest fertilizer factory in Narsingdi
Mitsubishi Heavy Industries Ltd (MHI) and China National Chemical Engineering No 7 Construction Co Ltd (CC-7) will jointly construct the plant, which will have an annual production capacity of 9.24 lakh metric tons which it is opened by 2022.
The government signed an agreement with companies from China and Japan on Wednesday to build the country’s biggest urea fertilizer factory in Narsingdi. Mitsubishi Heavy Industries Ltd (MHI) and China National Chemical Engineering No 7 Construction Co Ltd (CC-7) will jointly construct the plant, which will have an annual production capacity of 9.24 lakh metric tons which it is opened by 2022, reports UNB. The Ghorasal Polash Urea Fertilizer Project (GPUFP) will be implemented on the site of two decaying fertilizer factories - Urea Fertilizer Factory Ltd (UFFL) and Polash Urea Fertilizer Factory Ltd (PUFFL). Once implemented, the new factory will produce 2,800 metric tons of granular urea per day - about three times higher than the combined output of the existing two fertilizer factories. The deal was inked at a hotel in Dhaka yesterday by MHI senior vice president Hajime Nagano, CC-7 Chief Executive Officer Wang Da Lin, and Shah Md Aminul Haq, the Chairman of Bangladesh Chemical Industries Corporation (BCIC). The agreement was witnessed by Industries Minister Amir Hossain Amu and Japanese Ambassador (in Dhaka) Hiroyasu Izumi. The project will be implemented by investing Tk10,461 crore through the “Bidder Financing” process. Of the total amount, the government will provide Tk 1,844.19 crore while the rest will come as a commercial loan (Tk 8,616.72 crore). Officials said that the project will be implemented using “world class environment-friendly green technology” and by “maintaining the highest standards of operation”. Prime Minister Sheikh Hasina directed the industries ministry to build a new and modern urea fertilizer factory in place of the two old ones. As a result, the Executive of the National Economic Council (Ecnec) approved a proposal for setting up Ghorashal Palash Urea Fertiliser Factory at a cost of Tk 10,460 crore. The new fertilizer factory will dwarf the current biggest in Bangladesh, the Shahjalal Fertiliser Factory in Fenchuganj of Sylhet which has a production capacity of 5.81 metric tons.