IFC says $73.5m facility to Indorama Port to boost Nigeria’s FX inflows

IndoramaOscarline Onwuemenyi

13 July 2016, Sweetcrude, Abuja – The International Finance Corporation (IFC), a member of the World Bank Group has announced a $73.5million loan facility to OIS Indorama Port Limited, to support the development of a multi-purpose port terminal at Onne in Port Harcourt, Rivers State.

The Managing Director of Indorama Nigeria, Mr. Manish Mundra, explained in a statement that the project will boost development in the maritime sector.

He explained that this would also serve as a platform for direct exports of fertilizer to foreign markets. The project is expected to generate critical foreign exchange and help the country diversify from dependence on crude oil exports.

The total project cost is $150 million. IFC is providing a $73.5million debt package comprising a $52.5 million of its own funds and a $21 million parallel loan mobilised from a commercial bank. Rand Merchant Bank is providing an additional $31.5 million loan.

In addition, Mundra said, it demonstrates his firm’s determination to support economic development in Nigeria and help ensure the success of our investment in our urea facility.

Mundra added, “IFC, our long term partner, has worked with us extensively to invest and mobilise much needed foreign direct investment in the sector.”

On his part, IFC Country Manager for Nigeria, Eme Essien Lore said: “IFC is committed to supporting investments in key infrastructure that will help facilitate the growth of Nigeria’s non-oil sector.

“This port project will boost the commercial viability of Eleme Fertilizers, improve its access to export markets and support the manufacturing sector and improve job creation. It will further demonstrate the federal government’s commitment to supporting foreign direct investments in Nigeria’s infrastructure.”

Indorama Port is located at Onne port, about 16 kilometers south-east of the Eleme Fertilizer plant. It includes a 295-meter multipurpose jetty, storage facilities suitable for fertilizer consisting of a 45,000 metric ton warehouse for urea with an automated material handling system.

The port terminal will have the capacity to handle up to 2 million tons per annum of dry bulk urea exports, 12,000 twenty-foot equivalent units of containers and 150,000 pieces of breakbulk cargo per annum; it will be compliant with the International Ship and Port Facility Security code.

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