The government of Ethiopia in partnership with Morocco-based OCP Group, which specializes in fertilizer manufacturing, is set to build a fertilizer compound at a cost of 2.5 billion US dollars.
The center, to be built on 100 hectares of land around Shinile zone, an area bordering Dire Dawa and Ethiopian Somali Regional State, will house seven various types of industries, said Samuel Halala, Director General of Chemical and Construction Inputs Industry Development Institute. The fertilizer plants could manufacture 1.1 million metric tons of urea and 1.5 million metric tons of NPS fertilizers annually by using 0.8 trillion cubic meters of gas.
The construction of the fertilizer compound will be commenced after a design study is completed next year. The construction of the compound is expected to take three years. Ethiopia imports up to 1 million metric tons of fertilize annually on average. The construction of the fertilizer plants will therefore help the country to meet local demand, he said.
According to Samuel, some 60 percent of the cost for the project will be secured from banks on loan, while the remaining 40 percent will be covered by the government of Ethiopia and Office Chérifien des Phosphates (OCP).