Pakistan project 391-0429 · 1983 · agriculture

Evaluates project to increase Pakistan's production of nitrogen fertilizer, thus eliminating expenditure on imported fertilizer and increasing agricultural output. Final report is made by the Fauji Fertilizer Company Ltd. (FFC) (the contractor) and covers the period 1977-83. Lenders' appraisals indicated that despite delays in project completion, the FFC project was one of the best managed in the developing countries, resulting in a viable, modern plant capable of producing 569,000 M tons of prilled urea annually. The natural gas-based 1725 TPD urea plant includes an intermediate 1000 TPD ammonia plant, a 52 km pipeline to transport gas from the Mari gas field, related infrastructures and facilities, and a housing colony. The plant achieved 99% production efficiency during its first year of commercial operation, 80% of total production was marketed, and FFC captured 30% of the nitrogenous fertilizer market. Foreign exchange savings arising from substitution of urea imports were estimated annually at US$ 62 million; thus the foreign exchange costs of the project would be recovered in about three years. However, due to an unforeseen increase in global fertilizer production, the

Source: DEC abstract, PD-CAF-576 (1983). The source's own text.