|Approval Date||22 Nov 2018|
|Signature Date||04 Dec 2019|
|Sovereign / Non-Sovereign||Non Sovereign|
|Sector||Industry, Minning & Quarrying|
|DAC Sector Code||32110|
The proposed present is a corporate loan of up to USD 200 Million to support “Office Chérifien des phosphates (OCP)” implementation of the Jorf Lasfar Phosphate Hub (JPH) expansion capex program. OCP is specialized in the extraction, transformation, and commercialization of phosphate and its by-products. JPH is a 1,800 hectares industrial platform built to host ten integrated fertilizer plants. The platform has a production capacity of up to 1 MTPA of phosphorus equivalent (P2O5) per plant. Through this specialized industrial platform, OCP aims to attract major foreign investors in the sector, while offering them an opportunity to produce their phosphate products on-site and in the best conditions. As of today, the JPH development is almost completed but requires additional investments to allow for higher levels of production on-site and to meet the increasing demand of fertilizer in regional and global markets. Expansion of OCP’s Jorf Phosphate Hub (JPH) encompassing (i) the extension of fertilizer storage capacity by 200,000 additional tons, (ii) the construction of a new fertilizer loading platform, (iii) the expansion of seawater pumping and recovery capacities, and (iv) the rehabilitation of a number of ancillary facilities, including electrical, water, and security in various parts of the platform.
The project is in support of OCP’s expansion plan for JPH aimed at locally transforming the bulk of phosphate mineral into fertilizer and exporting it to regional and global markets. In other words, this program will enable OCP to process domestically more of its phosphate rock production into higher value-added fertilizer products to be exported to the African continent and worldwide.
The project will have significant economic spillover effects on job creation, production efficiency, taxes and F/X revenues to the country, while developing the phosphate industry and the required logistical infrastructure to support it. Also, the industrial platform will enable different operators to benefit from significant economies of scale through the standardization of units and the sharing of common services such as loading and unloading, supply of raw materials, utilities, storage, management and storage of discharges, connection to the port, etc. OCP is the largest private employer in Morocco with over 21,000 employees and the expansion project is expected to generate 910 additional jobs in the Jorf Lasfar complex while 18,000 new jobs are expected to be created globally by OCP over the 10 years’ loan life.
African Development Bank
|Last Update||19 Oct 2020|