Not abandonment but repositioning: IFFCO Canada

iffco canadaIn a statement issued the other day IFFCO Canada has said it will have a new arrangement for its urea fertiliser project at Becancour in Canada. An upswing in construction costs has rammed home the need for a new strategy and for new business partners.

It is not abandonment but just an effort to develop a new approach to make such a huge project viable, the statement noted. The project is in collaboration with La Coop federee of Canada.

Manish Gupta CEO of IFFCO Canada claims there is interest in the project in the region and therefore this suspension will pave the way for a proper review of the strategy of financing, construction and execution, he said.

The release says in order to reposition their urea production plant at Bécancour, La Coop fédérée and IFFCO announce, in the name of IFFCO Canada shareholders, suspension of some steps: these include the preparation of preliminary plans and specifications to establish project costs and the signing of an EPC contract (engineering/procurement/construction).

As construction costs are now estimated to be in excess of $2B, this suspension will allow the shareholders to review the global strategy of financing, construction and execution, the release adds.

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