CONSTRUCTION of a multitrillion shilling fertiliser plant with envisaged daily production capacity of 3,850 tonnes is scheduled to start in Kilwa, Lindi Region, by next March. The petrochemical complex, a partnership project under a consortium of investors from Tanzania, Europe and Asia, is among the largest fertiliser investments in the continent.
Permanent Secretary (PS) in the Ministry
of Industry, Trade and Investment, Dr Adelhelm Meru, told the ‘Daily
News’ in Dar es Salaam yesterday that initially the project had to
commence this month but there were some hitches.
“This is a big project and in any
project of that calibre, there are challenges that are likely before it
takes off ... they have been addressed and we are set to begin
construction in the first quarter of next year,” Dr Meru explained,
adding that all preparations, including compensation of evicted
residents to pave way for the project, are complete.
The 1.2 billion Euro (about 3trn/-)
project, the single largest fertiliser project in the country and three
times bigger than the Dangote Cement plant whose construction cost 500
million US dollars (over 1trn/-), will employ world leading
technologies.
German Ambassador to Tanzania, Egon
Kochanke, on Wednesday said the mega fertiliser factory will cost euro
1.2 billion and will be one of the largest fertiliser factories in
Africa. The ambassador made the remarks during talks with the Minister
of Finance and Planning, Dr Philip Mpango, where they discussed a range
of development issues.
He called on the government to address
the challenges related to the natural gas cost to allow construction of
the fertiliser plant to start as early as possible to boost the
country’s agricultural sector.
The envoy who was accompanied by his
deputy, Ambassador John Reyels and Director of Cooperation in the
embassy Julia Hanning, described the huge fertiliser plant in the
country as the outcome of President John Magufuli’s industrialisation
drive.
During the talks, Dr Mpango appreciated
the cooperation that exists between the two friendly countries,
acknowledging that the investment will boost agriculture sector which
contributes over a quarter to the gross domestic product (GDP) and
employs 75 per cent of the labour force, but whose growth remains
stifled by low crop yield.
The fertiliser plant, like the Dangote
cement factory will be situated in the Southern part of the country -
Lindi Region, close to the large offshore gas finds. Natural gas is one
of the hydrocarbon sources of ammonia, a key fertiliser ingredient.
And like Dangote Cement Factory whose
production saw price of cement in the country dropping, the fertiliser
factory will likely lead to declining price of the essential farm input.
According to media reports, the
state-run Tanzania Petroleum Development Corporation (TPDC) has signed a
joint venture agreement with German firm Ferrostaal Industrial
Projects, Danish industrial catalysts producer Haldor Topsoe and
Pakistan’s Fauji Fertiliser Company to develop the plant.
Local partners in the investment include
Minjingu Mines and Fertiliser, a major producer and distributor of
fertiliser for East, Central and Southern Africa. Tanzania currently
imports most of her fertiliser but once the fertiliser plant begins
production it will boost agriculture output with surplus exported to
foreign markets.
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