Fertiliser Cooperative Indian Farmers Fertiliser Cooperative (IFFCO) has inked project and financing agreements for the phosphoric acid project being implemented by Jordan India Fertiliser Company (JIFCO).
The project is scheduled to achieve commercial production by mid-2013. The 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 dollars for the project. JIFCO was incorporated in March 2008 for setting up 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 a 52 per cent equity, while JPMC holds a 48 per cent equity in JIFCO. King Abdullah II, the King of Jordan, laid the foundation stone of the project at Eshidiya Site on October 3, 2009. The JPMC will supply the required quantity of rock phosphate under a long-term supply agreement.
Kisan International Trading (KIT), a 100 per cent subsidiary of IFFCO will purchase minimum 70 per cent of production of phosphoric acid under a long term off-take agreement. JPMC will purchase the balance production of phosphoric acid. The project implementation activities started in mid-2010.
Coursey:UNI
