KARACHI, Nov 26: A consortium of major domestic and foreign banks in Pakistan signed on Saturday a Rs23 billion loan agreement to fund a new fertiliser complex for the Fatima Fertiliser.

This is the largest ever greenfield industrial project by Pakistani entrepreneurs, financed in local currency. The total cost of the plant is expected to be over Rs35 billion. It will manufacture up to 1.5 million tons of fertiliser per annum.

The Fatima Fertiliser is a joint venture between the Fatima Group and the Arif Habib Group. The groups own Pak-Arab Fertiliser, which was privatised in 2005.

The Fatima Fertiliser complex will consist of plants with a capacity of manufacturing 1,500 TPD of ammonia, 1,500 TPD of nitric acid, 1,500 TPD of urea, 1,000 TPD of nitro phosphate, 1,400 TPD of calcium ammonium nitrate and 1,000 TPD of nitrogen potassium phosphate compound fertiliser. The plant will be located at Mouza Khuda Bux, Sadiqabad, about 3km from the Fauji Fertiliser plant.

The complex has been allocated 75 MMCFD of gas from the Mari field which will allow it to produce 1.1 million tons of fertiliser in the first phase. If the allocation is increased to 110 MMCFD, the plant will be capable of producing its full capacity of 1.5 million tons at no additional capital cost.