Bangladesh plans ambitious new urea plants
Tue, Jan 13th, 2009 11:07 pm BdST
Dhaka, Jan 13 (bdnews24.com) – The government will spend tens of billions of takas to build two new fertiliser plants and overhaul the old ones in a bid to reduce dependence on urea imports, officials say.
A senior official said after a meeting with industries minister Dilip Barua on Tuesday that all six existing urea plants will be overhauled at a cost of Tk 2800 crore in less than four years.
"The BCIC will spend nearly Tk 2000 crore of its own and get another Tk 800 crore from government to overhaul the plants by 2012," BCIC chairman Mukhlesur Rahman said.
"We expect the plants to yield up to 85-90 percent of their capacity, giving an annual output of 19 lakh metric tonnes," the official said.
"All six urea fertiliser plants are worn out, the newest being 19 years old. The plants have become nearly ineffective for lack of renovation," he told the minister.
The two new factories will each cost between Tk 5000 crore and Tk 6000 crore, the chairman said.
The BCIC chairman said the 5.77-lakh-MT-capacity North West Fertiliser Company, one of the proposed new plants, will be set up at Saidabad in Sirajganj. The Chinese EXIM Bank has agreed to fund the project at a low cost, he said.
A second, similar capacity plant has been planned, expanding the existing Natural Gas Fertiliser Factory at Fenchuganj, Sylhet. The new company will be named Shahjalal Fertiliser Company.
Bangladesh Chemical Industries Corporation, which owns and manages all state fertiliser plants, also part-owns export-oriented KAFCO, managed by its foreign owners.
This year, the BCIC factories are forecast to produce 14 lakh MTs of urea, while Bangladesh will require 28 lakh MTs.
Five lakh MTs will come from KAFCO and the rest from costly imports, the chairman said.
The chairman said the caretaker government's decision to reduce urea subsidy helped the BCIC become self-reliant.