Dhalkebar, Dhanusa fertilizer plant Phase 1: Bohra Group set to Invest $200 million USD

Kathmandu/Luxembourg : Dhalkebar, Dhanusa fertilizer plant Phase 1: Bohra Group set to Invest $200 million USD.

Major work is now set to commence on the $200 million USD Dhalkebar, Dhanusa fertilizer plant.

The phase one of the project expected to become fully functional in 2021 will produce 100 million metric tonnes (MT) of methanol and 300 metric tonnes of urea per annum with an annual turnover of $60 million USD.

The Chairman of the Bohra Group Purna Bohra said the $200 million USD fertilizer plant project is expected to generate 8,000 jobs during the construction phase and 2,000 permanent employment opportunities, when completed. Bohra spoke while receiving copy of the signed PPP agreement with members of Investment Board Nepal (IBN) undertaking to construct a fertilizer plant in Dhalkebar, Dhanusa, Nepal.”

He highlighted the components of the fertilizer plant, explaining that it would accommodate Methanol, Urea Ammonia, Gas Processing Plants as well as a 35-kilometre Pipeline Project.

Describing the project as the single biggest private sector company in Nepal with a $200 million equity fund, Purna canvassed the total support and cooperation of the government towards its realisation.

The 2200 MTPD ammonia plant and 3850 MTPD urea plant, at Dhalkebar, Dhanusa, includes the construction of a production unit, storage units, warehouses, administrative space, a laboratory, distribution units and related infrastructure and the installation of machinery.

He added that the Dhalkebar project was capable of transforming the Province's economy and that of the country as a whole.

“We are here today because we have achieved 95 precent, in terms of funding and equity for the project. You will all agree with me that raising $180 million in today's world is like mission impossible. Thanks to my good friend and a very reliable Capital Financing Professional Peter Vanderslice, who is a managing partner at Quinlan Capital Group Luxembourg, who made it possible for us to raise such amount of funding for this project within this short period of time. And, this is the first such private sector investment in Nepal that has attracted up to $200 million USD equity fund,” he said.

It is the first commercial bank in the private sector to establish a branch network in all 77 districts of Nepal. The bank serves over 4.5 million customers through a network of more than 1,100 service centers, which include 350 branch offices, over 369 ATMs, 322 branchless banking services, 66 extension and revenue collection counters, and maintains 3 foreign representative offices.

Speaking shortly after presenting the signed agreement to the company officials, Sushil Bhatta Chief Executive Officer of the Nepal Investment Board assured the management of the Bohra Fertilizer Company of the government's readiness to sustain the existing conducive operating environment for business investments to thrive in the Province.