Jordan: Funding for the IFFCO/JOPH Phosacid Project

The International Finance Corp. (IFC), a part of the World Bank, is lending Jordan India Fertilizer Co. US$215 million to build a phosphoric acid plant in Eshidiya, some 200 km south of Amman, Jordan. The plant was scheduled to be completed by the end of 2012 and the total estimated investment value of the project is about US$625 million.

The plant, for which the European Investment Bank (EIB) is providing another $120 million, will have a production capacity of 1,500 tons a day (475,000 tonnes per annum). A US$225 million sulphuric acid production line addition, which will follow the plant’s construction, is expected to yield 4,500 tonnes per day of sulphuric acid. It will also include utilities and a power plant. Water will be recycled.

Jordan India Fertilizer is a joint venture between Indian Farmers Fertilizer Cooperative Ltd., which has 52 percent, and Jordan Phosphate Mines (JOPH) Co., the world’s second-biggest exporter of phosphate rock, with 48 percent. JOPH has agreed that a minimum of 70% of the raw acid from the Jordanian plant would be exported to India for IFFCO, which is the largest fertilizer producer and distributor cooperative in India. The project was announced in 2008 and it uses nearby captive phosphate rock.

In 2010 the total bilateral trade between Jordan and India stood at US$1.4 billion, exporting Jordan mainly phosphate and potash to India and it imports mainly garments, pharmaceuticals and agri-equipment. In the last three years, some 20 Indian companies have set up manufacturing units in Jordan in various sectors like garments, pharmaceuticals and agricultural equipment.

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