Press Release

OFID signs US$25 million loan agreement with sugar manufacturer in the Sudan

02/2007 January 31, 2007 Khartoum, the Sudan
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Today in Khartoum, the OPEC Fund for International Development (OFID) signed a US$25 million loan agreement with the White Nile Sugar Company. The agreement was signed by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of OFID, and by Mr. Hassan Satti, General Manager of the White Nile Sugar Company. In his remark, Mr. Lootah said OFID had always enjoyed a “solid working relationship” with the Republic of the Sudan, which spanned more than three decades. The Chairman also said he looked forward to maintaining a “close and fruitful partnership” with the country.

This was followed by the signing of a guarantee agreement for the loan by Mr. Suleiman J. Al-Herbish, Director-General of OFID, and by HE Mr. El Zubair Ahmed Al Hassan, Minister of Finance and National Economy of the Republic of the Sudan. The Minister thanked OFID for its ongoing support, adding that the project would have a “considerable impact” on helping the country boost its agricultural development.

The financing, being the second OFID loan to co-finance a sugar-related project in the country, will support a venture to boost the Sudan’s sugar-producing sector.

Possessing a vast amount of arable land and plentiful water resources, the Republic of the Sudan is well-positioned to develop further its already strong agriculture sector. The sugar industry, in particular, has shown remarkable growth in recent years, with appreciable quantities produced for export. Today Sudan is ranked among the top 10 least cost producers in the world. To build on this success, the Sudanese Government has entered into a public/private partnership to establish a new sugar producer, the White Nile Sugar Company.

To be located 250 km south of Khartoum on a 70,000 ha site with good soil conditions and an excellent transport infrastructure, the project includes all the works necessary for the establishment of a large capacity, fully-integrated and diversified sugar production and processing plant. The project will also create subsidiaries for the processing of by-products.

In all, the White Nile Sugar Company will create around 4,200 new jobs and, in the medium-term, it is anticipated that some 120,000 people will live directly or indirectly from the project.