CAIRO: ARAB NEWS
Published — Thursday 2 May 2013
Last update 2 May 2013 3:46 am
A total of $ 372 million is being invested into building a mega sugar production facility. It is expected to produce and refine more than 500,000 metric tons of sugar annually.
The Al-Nouran Sugar project in Egypt involves the construction of a new sugar production facility from sugar beet located in Al-Sharkia Governorate and the acquisition of an affiliated beet agricultural company.
The shareholders of Al-Nouran Sugar include the Islamic Corporation for Development of the Private Sector (ICD), the Arab Fund for Economic and Social Development, the Egyptian Sugar & Integrated Industries Company; and Al-Nouran Multitrading, a leading private sector sugar trading house in Egypt.
Khaled Al-Aboodi, CEO of the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, has signed the shareholders agreement, the financing facilities and the initial working capital term sheets of the sugar project. It took place with the support of Prime Minister Hisham Kandil and Investment Minister Osama Saleh.
ICD led the arrangement and structuring of the equity and mezzanine financing facility.
The mezzanine facility arranged by ICD includes the OPEC Fund for International Development (OFID), the Arab Fund for Economic and Social Development as well as ICD.
Khalid Al-Aboodi said: “We are delighted to sign this agreement which we hope boosting the sugar production, supply and trade.”
Al-Aboodi said the mega project would also lead to creation of jobs, transfer of technology, promotion of sustainable practices and poverty alleviation. He said the agreement represents an important element in the corporation’s strategy as a catalyst for private sector development.
“Moreover, this operation demonstrates the commitment of ICD in the development of the private sector in the country where we see the role of private sector needs to be enhanced to achieve the required rate of growth of the economy.”
The Al-Nouran Sugar project is expected to generate up to 3,000 new jobs and numerous indirect opportunities associated with the delivery of sugar beet for which the factory will contract with up to 50,000 farmers annually with substantial developmental benefits.
Production from Al-Nouran Sugar will reduce the country’s reliance on imported sugar by 25 percent from the current 1 million tons annually.
Exports of byproducts that will generate savings to the balance of payments of up to about $ 250 million annually. The project is expected to be completed by Q4 2015.