MOPCO To Meet 22 Banks For Discussing US$1.050 Bln Loan

Misr Fertilizer Production Company (MOPCO) will meet 22 banks during this month to discuss the US$ 1.050 billion finance that was earlier received by the company.

MOPCO Fertilizers Factory resumed its production after it had stopped 10 consecutive months due to the protests held by people of Damietta against the establishment of the factory for contaminating the environment.

The National Bank of Egypt (NBE), Banque Misr and Arab African International Bank (AAIB), who arranged the finance, face a problem as the finance was disbursed to MOPCO in order to establish two factories and if the company did not establish such projects, it will default on the loan.

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 to operate factory no. 3 only and not resuming the establishment of factories no. 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 which shall 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.

MOPCO received a loan amounting to US$ 1.050 billion from 22 banks to establish and operate a 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.