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Cairo, June 4, 2007
— IFC, the private sector arm of the World Bank Group, today signed an agreement to invest in the Indo-Egyptian Fertilizer Company. The $80 million loan for IFC's own account and a loan of up to $170 million from participant banks will be used to set up a phosphoric acid plant in Edfu, an area in Upper Egypt that is lagging behind in economic development. The project will create almost 350 permanent jobs in addition to about 1,000 jobs during construction. The project will create the country’s first major facility for manufacturing phosphoric acid, a component of fertilizers, from phosphate rock. It will promote the use of natural resources and increase industrial exports, a key priority for the government.
The Indo-Egyptian Fertilizer Company was recently established as a joint venture between the Indian Farmers Fertilizer Cooperative Limited and the El Nasr Mining Company in Egypt. South-South foreign direct investment—from one developing nation to another—is a key IFC objective in the Middle East and North Africa. Egypt produces 2.2 million tons of raw phosphate rock annually, about 1.4 percent of global production. With an untapped reserve of nearly 760 million tons and the increasing demand for phosphate-based fertilizers, the project will benefit the country significantly.
"We are pleased to partner with IFC in this project, which will serve as a catalyst for Egypt’s growth in the sector, while creating jobs and building capacity in new technologies. The project will also benefit India by supplying the country with phosphoric acid for domestic use,” said Chandra P. Srivastava, Chairman of the Indo-Egyptian Fertilizer Company.
“Our strategy in the chemicals sector in the Middle East and North Africa is to support companies that have access to key raw materials and low-cost production so that they can increase exports and revenues, while adding value to the local economy. We hope that our investment will boost international confidence in the quality of Egyptian phosphate rock and encourage foreign investment in this important sector,” said Michael Essex, IFC’s Regional Director.
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org
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