Republic of Sudan

White Nile Sugar (Supplementary Loan)

Loan No.:

548

Interest Rate:

2.5%

Beneficiary:

White Nile Sugar Company Ltd.

Grace Period:

5 years

Project Cost:

KD 284.0 million

Maturity:

21 years

Amount of Loan:

KD 30.0 million

Repayment:

31 semi-annual installments

Date of Loan Agreement:

05/04/2010

First Installment:

5 years following the first disbursement

Date of Effectiveness:

13/05/2010


Objectives:

The project aims at increasing the agricultural production and developing the agro-industry in the Republic of Sudan. It will also contribute to alleviating poverty and improving the living conditions of the population in the project area. At the national level, the project will enhance self sufficiency in various strategic agricultural products, improve the balance of trade and create new employment opportunities.

Description:

The project, which is expected to be completed during the fourth quarter of 2011, consists of construction and equipment of 2 pumping stations, construction of an irrigation system covering 60 thousand ha of arable land, procurement of agricultural machinery, building a complete sugar cane factory with a capacity of 450 thousand tons of sugar annually, and procurement of the necessary technical assistance for project implementation. The project comprises the following main components:

  1. Irrigation and Agricultural Works: This includes all civil works for the construction of 2 pumping stations to elevate about 60 m3/s of the White Nile water to the irrigation area, the procurement of 2 pumping units with capacities of about 960 KW and 860 KW, and the construction of a power generation plant with a capacity of about 11 MW. It also includes the construction of 2 main canals with a length of about 21 km to transport and distribute water to 43 sub-canals with a total length of about 450 km, the laying of 671 km of pipelines to irrigate about 60 thousand ha of prepared agricultural lands, the construction of a drainage canal with a length of about 70 km to protect lands from floods, the construction of country roads with a total length of about 93 km, in addition to the purchase of the necessary agricultural machinery, and other harvest and transport equipment for sugar cane and other crops.
  2. Sugar Cane Factory: This includes the construction of a sugar cane factory with an annual capacity of about 450 thousand tons of sugar, the construction of a steam powered electrical generating plant with a capacity of 104 MW, in addition to the laying of power cables and the procurement of required electric transformers. The factory consists of the following divisions: cane treatment and juice extraction, sugar production, transformer stations and substations, and service stations including workshops, stores and warehouses, fuel tanks and maintenance centers. Works also include the construction of administrative and services buildings, road and wastewater networks, and the desalination plant.
  3. Technical Services: This includes providing consultancy services to review the project's technical and economic studies, complete the detailed and operation designs, monitor the project implementation and supervise the project operation, as well as training of employees.

Financing:

The Arab Fund's first loan (No. 476/2005) and this loan cover about 17.6% of the total project cost. The company is currently negotiating another loan to close the financing gap. The company and the Sudanese Government will cover the remaining cost of the project and any additional cost that may arise.


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