IFFCO to raise Rs 1,500 cr for its Jordan JV project

NEW DELHI: Fertiliser coop giant Iffco has signed the financing agreements for its Jordan venture, Jordan India Fertiliser Company(JIFCO). The Eshidiya venture which is expected to start production of phosphoric acid by 2013 will assure supply of phoshate fertilisers for the farm sector in India. The project and financing agreements were signed by the officials of IFFCO, International Finance Corporation (IFC), European Investment Bank (EIB), Jordan Phosphates Mines Company Ltd (JPMC) and JIFCO in London. IFC and EIB are the lead arrangers for the debt of $336 million for the project.

Jordan India Fertilizer Company (JIFCO) was incorporated in March 2008 for setting up the phosphoric acid project with annual capacity 475,000 tonnes of phosphoric acid in terms of P2O5 at Eshidiya in Jordan. IFFCO and its affiliate hold 52% equity, while JPMC holds 48% equity in JIFCO.

JPMC will supply the required quantity of rock phosphate under a long term supply agreement. Kisan International Trading (KIT), a 100% subsidiary of IFFCO will purchase minimum 70% of production of phosphoric acid under a long term Off-take agreement. JPMC will purchase the balance phosphoric acid.

The project implementation activities started in mid-2010. SNC-Lavalin International, France (SNCL) is Project Manager under an Engineering, Procurement and Construction Management (EPCM) Contract. The Project is scheduled to achieve commercial production by mid-2013.

Dr.U.S.Awasthi, Managing Director of IFFCO expressed his happiness over the developments and stated that “IFFCO is continuously strengthening the raw material linkages for its phosphatic fertiliser producing plants to cater to the need of fortified & phosphatic fertilizers."

To meet the growing demand of fertilizers IFFCO has also established joint ventures in Senegal, Oman, Australia, Peru & Argentina for sourcing a part of its requirement of inputs and finished products.