The International Finance Corporation (IFC), a member of the World Bank Group, has recently granted a $73.5 million loan facility to OIS Indorama Port Limited for the development of a multi-purpose port terminal at Onne in Port Harcourt, Rivers State in Nigeria. The aim of the investment is to boost Nigeria’s fertilizer exports. The package provided by IFC consists of a $73.5 million debt package, comprising $52.5 million of its own funds and a $21 million parallel loan mobilized from a commercial bank. Nigeria‘s Rand Merchant Bank is providing an additional $31.5 million loan.
The project is meant to serve as a platform for direct exports of crop nutrient to international markets, generating foreign exchange for Nigeria and diversifying its dependence on crude oil exports. Indorama Port is situated at Onne port, about 16 kilometers south-east of the Eleme Fertilizer plant and 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 facility will have a capacity to handle up to two million tons per annum of dry urea exports.
Manish Mundra, Managing Director of Indorama Nigeria, commented on the deal that “this project will boost development in the maritime sector and demonstrate our determination to support economic development in Nigeria and help ensure the success of our investment in our urea facility. IFC, our long term partner, has worked with us extensively to invest and mobilize much needed foreign direct investment in the sector.” Eme Essien Lore, IFC Country Manager for Nigeria, added that “IFC is committed to supporting investments in key infrastructure that will help facilitate the growth of Nigeria’s non-oil sector“.
IFC believes that this project will contribute to job creation in the country, improve access to export markets and support the manufacturing sector. It is also hoped to demonstrate the commitment of the federal government to support foreign direct investments in the country’s infrastructure.