IFC grants $73.5mn loan for port terminal construction in Rivers State

11 Jul 2016
Financial Nigeria


The port terminal will serve as a platform for direct exports of fertilizer to foreign markets.

Rivers State Governor, Nyesom Wike

The International Finance Corporation said on Monday that it has approved a $73.5 million loan for the construction of a port terminal at Onne in Port Harcourt, Rivers State.

The IFC, which is the private sector arm of the World Bank Group, said the loan facility was granted to OIS Indorama Port Limited, which is a joint venture between Indorama Eleme Petrochemicals Limited and Oil and Industrial Services (OIS) Limited.  

According to the IFC, the port terminal will serve as a platform for direct exports of fertilizer to foreign markets and generate critical foreign exchange to help Nigeria diversify its economy from oil exports.

The total project is expected to cost about $150 million. The IFC said it is providing a $73.5 million debt package comprising a $52.5 million of its own funds and a $21 million parallel loan mobilized from a commercial bank. Rand Merchant Bank is also providing an additional $31.5 million loan for the project.

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

The 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 tonne warehouse for urea with an automated material handling system.

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

Indorama Nigeria will operate the sections of the terminal that handle bulk urea exports while OIS will operate the sections that handle general cargo, break bulk, and containers servicing the off-shore oil and gas industry. The port’s material handling systems is about to be commissioned with loading of the first vessel expected in mid-July 2016.

“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,” said Manish Mundra, Managing Director of Indorama Nigeria.

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