Washington D.C./Amman/Luxembourg, June
6, 2011 — IFC, a member of the World Bank Group, is providing a $215
million loan to the Jordan-India Fertilizer Company (JIFCO) to support
construction of a state-of-the-art phosporic acid plant for the
production of fertilizer in Jordan, which will help boost agricultural
productivity and create hundreds of jobs. The financing includes a $90
million IFC B Loan raised from a syndicate of commercial banks including
Ahli United Bank, Europe Arab Bank, Bank Muscat SOAG, Cordiant Capital
and State Bank of India, Bahrain.
The plant, to be built in the city of Eshidiya, is also being financed
through $120 million from the European Investment Bank (EIB) and will serve
an important role for the global food chain. Its sponsors, Jordan Phosphate
Mines Company (JPMC) and India Farmers Fertilizer Cooperative (IFFCO),
are both involved in sustainable efforts to increase the global food supply,
and are important players in the economies of Jordan and India.
JPMC Chairman and CEO, H.E. Walid Kurdi, said, “IFC played an important
role in mobilizing the financial resources needed for the plant, and worked
closely with the sponsors from the beginning to support the success of
the project. This plant will provide an important service for both Jordan
and India, as well as globally, and is the type of role JPMC would like
to continue to provide as a key supplier in the world fertilizer market.”
Dr U.S. Awasti, Managing Director and CEO of IFFCO, said, “We value our
relationship with IFC, which has worked with us on a number of projects
and proved to be a dedicated partner. IFFCO’s strategic objective is to
increase the availability of fertilizers to farmers in India, by entering
into ventures with partners, thus ensuring the long-term supply of high-quality
nutrients. This objective fits with our mission to deliver high quality
affordable fertilizer products to Indian farmers.”
In addition to creating over 800 jobs, the new plant is designed with environmental
benefits, including highly-efficient production technology that allows
the local grid to use the plant’s excess production of electricity. The
plant will also recycle water with high efficiency.
Guy Ellena, Director of IFC’s Global Manufacturing, Agribusiness, and
Services for Europe, Middle East and North Africa, said, “JIFCO’s success
is demonstrating the effectiveness of South-South investments in developing
important projects that provide jobs and economic growth. We see our long-term
relationships with global leaders like JMPC and IFFCO as core to our strategy
to support responsible fertilizer companies that are helping alleviate
the global food crises through their products.”
Philippe de Fontaine Vive, EIB Vice President responsible for Mediterranean
partner countries, commented: "Our objective in supporting this
project is to make a key contribution to the development and competitiveness
of the Jordanian economy by combining employment opportunities, local resources,
skills and expertise, as well as significant exports earnings to Jordan.
I am delighted that EIB is associated with such a project."
JPMC is one of Jordan’s largest companies and an active member of the
communities in which it operates, sponsoring local health projects, educational
scholarships and working with local communities to boost economic development
in Jordan. It is also the world’s second largest exporter of phosphate
rock, a key element in fertilizer production.
IFFCO is the largest fertilizer cooperative in India, serving over 50 million
farmers, supplying them with fertilizer and services for environmentally
sustainable farming. IFFCO is active in providing important on-the-ground
help to farmers, teaching best practices in sustainable farming and fertilizer
application.
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
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About Jordan Phosphate Mines Co.
Jordan Phosphate Mines Company (JPMC) is a Jordan-based public shareholding
company engaged in exploiting, mining, producing and marketing phosphate
rock and fertilizers in Jordan. The Company operates in three mining locations
in the central and southern parts of Jordan, namely Al Hassa, Al Abiad,
and Eshidiya mines. It produces seven million tons of phosphate rock annually.
JPMC owns and operates a complex in Aqaba that produces Phosphoric Acid,
Di-Ammonium Phosphate, and Aluminum Fluoride. The Company holds capital
shares in Indo-Jordan Chemicals Company Limited and Nippon Jordan Fertilizer
Company Limited. For more information, visit www.jordanphosphate.com.
About Indian Farmers Fertilizer Cooperative
IFFCO is the largest producer and marketer of fertilizers in India, with
installed fertilizer capacity of about 8.5 million tons, including 4.3
million tons per annum of phosphate fertilizer capacity, the largest in
India. It was established in 1967 by the Government of India but by 2004
the government had fully divested its equity to over 39,000 cooperative
societies and 26 marketing federations spread across the country, representing
over 50 million individual farmers. For more information, visit www.iffco.in
About European Investment Bank
The European Investment Bank (EIB) is the long term financial institution
of the European Union (EU). Its shareholders are the 27 Member States of
the EU.
EIB, as the first financial investor in Mediterranean region, focuses on
strategic projects that are able to bring visible changes to local economies.
The Bank is supporting Jordan’s drive towards a competitive and modern
economy. Since 1978, EIB has provided over $ 1.2 billion for projects in
the industrial, energy, water and transport sectors and to help develop
the private sector. Investment in the industrial sector is aimed at adding
value to local resources while increasing employment opportunities for
a young and skilled population and providing high-quality products that
comply with regional and international standards. www.bei.org
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