Republic of Tunisia

Mdhila 2 Triple Super Phosphate Fertilizer Production
Loan No: 592 Interest Rate: 3.0 %
Beneficiary: Groupe Chimique Tunisien (GCT) Grace Period: 4 years
Project Cost: KD 114.8 million Maturity: 22 years
Amount of Loan: KD 22.0 million Repayment: 37 semi-annual installments
Date of Board Approval: - First Installment: 4 years following the first disbursement
Date of Loan Agreement: 2013-06-19 Date of Loan Effectiveness: -

Objectives:

The project aims at increasing the production of high value fertilizer in Tunisia, and reducing the emissions of harmful gasses and dust resulting from the transfer and conversion of phosphate ore into triple super phosphate (TSP) fertilizer. This will be accomplished through the construction of a new production plant in Mdhila. The project also aims at utilizing the thermal energy resulting from the manufacturing process to generate electricity, providing new employment opportunities, and improving the economic situation in the project area.

Description:

The project, which is expected to be completed by the end of the second quarter of 2015, comprises of all the civil works necessary for the preparation and processing of the site, as well as the supply, installation and operation of sulfuric acid, phosphoric acid and TSP fertilizer production units. It also includes the equipment and supplies needed to utilizing the resulting energy from the manufacturing process to generate electricity and to reduce emission of harmful gases and dust. The project also includes basic services, storage units, maintenance workshops and buildings, and the necessary consultancy services for the design of the project, the supervision of its implementation, as well as the training of the employees. The project includes the following main components:

  1. Civil Works and Shared Facilities: This includes the works necessary for the preparation of the site and the construction of the buildings, facilities, service networks, storage units and workshops.
  2. Production Units:
    1. A sulfuric acid production unit with a daily capacity of 1,800 tons, and a 22 MW electric generating unit which utilizes the thermal energy resulting from the manufacturing process
    2. A phosphoric acid production unit with a daily capacity of 600 tons, and a retrieval line for the fluorine gas .
    3. A TSP fertilizer production unit with an annual capacity of 380 thousand tons, and equipment for the transport, storage and shipping of the fertilizer .
  3. Institutional Support and Training:
    1. The necessary consultancy services for the design of the project, the supervision of its implementation, and trial operation.
    2. The training of employees in the area and the development of their capabilities .

Financing:

The Arab Fund’s loan covers about 19% of the total project cost. The European Investment Bank contributes to the financing of the project with a loan equivalent to about KD 53 million (about 46%). The GCT will cover the remaining cost of the project and any additional cost that may arise.