Mitsubishi Heavy Industries Ltd. (MHI), Japan senior vice president Hajime Nagano and China National Chemical Engineering No 7 Construction Co Ltd (CC-7) China Chief Executive Officer Wang Da Lin and Bangladesh Chemical Industries Corporation (BCIC) Chairman Shah Md Aminul Haq signed the agreement on behalf of their respective sides.

Industries Minister Amir Hossain Amu and Japanese Ambassador in Dhaka Hiroyasu Izumi witnessed the signing that took place at a city hotel. 

The project titled ‘Ghorasal Polash Urea Fertilizer Project (GPUFP)’ will be implemented at the place of the existing two very old fertilizer factories -- Urea Fertilizer Factory Ltd (UFFL) and Polash Urea Fertilizer Factory Ltd (PUFFL).

Once implemented, the factory will produce 2,800 metric tonnes of Granular Urea a day, which is about three times higher than that of the existing two fertilizer factories.

This project will be implemented through ‘Bidder Financing’ process, spending Tk 10,460.91 crore.

Of the amount, the government will provide Tk 1,844.19 crore while the rest of the amount, Tk 8,616.72 crore, will come as commercial loan.

Officials said the project will be implemented maintaining the highest standard and using world-class environment-friendly green technology.

Earlier, Prime Minister Sheikh Hasina had directed the Industries Ministry to build a modern urea fertilizer factory replacing the old two ones.

Later, this month, the Executive of the National Economic Council (Ecnec) approved a proposal for setting up Ghorashal Palash Urea Fertiliser Factory at a cost Tk 10,460 crore which will be completed by 2022.

Currently, Shahjalal Fertiliser Factory in Fenchuganj of Sylhet is the country’s biggest fertilizer factory having the production capacity of 5.81 metric tonnes.