MOPCO Loan Arrangers May Reduce Finance By US$ 300 Mln
The National Bank of Egypt (NBE), Banque Misr and Arab African International Bank (AAIB) who are arranging a loan amounting to US$ 1.050 million for the Misr Fertilizer Production Company (MOPCO) will meet next week to discuss the possible methods to help the company resume its production after halting production for about 10 consecutive months because of the protests held by people against the establishment of the factory for contaminating the environment.
Sources told Amwal Al Ghad that the banks will discuss the conditions which the company agreed upon in order to resume its production again as well as the extent to which the company is in need for the final tranche of the loan amounting to US$ 300 million and the credit facilities amounting to US$ 33 million after the Company reached an agreement with people of Damietta on operating the factory number 3 only and not resuming the establishment of factories number 2 and 1 which means that the investment cost decreased and the company will not need the last tranche.
People of Damietta conditioned on the Company to operate only one factory of the three ones and to comply with the environmental protection standards including separating oils and grease from liquid waste, dealing with a company for safe disposal of solid and hazardous waste, setting a plan to face risks and emergencies, establishing an advanced waste-water treatment plant, building a seawater desalination plant and installing barriers to prevent ammonia release. People also conditioned on the Company to contribute EGP 180 million annually to developmental projects in Damietta and especially in El Senanya village.
MOPCO Fertilizers Factory started is production of urea yesterday after stopping their production for 10 months, resulting in losses of US$ 2 billion.
22 banks contributed to a loan amounting to US$ 1.050 billion for MOPCO to establish and operate nitrogenous fertilizer complex to produce ammonia and urea in the free zone in Damietta. The daily capacity production of the complex is 3850 tons of urea and 2400 tons of ammonia.
