Kampala. The construction of Uganda Sukulu phosphate factory in Tororo District has got a boost of $240 million (about Shs787.7b) at the China-Africa Investment and Financing Forum held in South Africa.
Industrial and Commercial Bank of China (ICBC) in cooperation with the Standard Bank Group will disburse the money in tranches to Guangzhou DongSong Energy Group Company Ltd which is the project developer.
The company, Guangzhou DongSong Energy Group Company Ltd, plans to establish a mine and a beneficiation plant with annual capacity of two million tonnes, a phosphate fertilizer plant of annual production of 300,000 tonnes, a sulfuric acid plant of annual production of 400,000, a 12MW waste heat-based power generation plant and a steel mill of annual production of 300,000 tonnes.
It is estimated that the company will hire more than 1,200 local people in all their plants, on top of investing in schools, hospitals and other public welfare projects.
“The project will boost agriculture production through the provision of fertilisers, support infrastructure development through the iron and steel production, offer jobs to the region, support other industries and boost our export earnings through value addition of the primary commodities,” Energy ministry Permanent Secretary Kabagambe-Kaliisa was quoted in a statement sent to this newspaper.
Mr Kabagambe-Kaliisa said government has granted mining rights to the investor in form of a Mining Lease for 21 years, and other exploration licences to finalise additional exploration work.
He said government has further provided 600 acres of land to facilitate the development of the industrial complex, the construction of staff residences and the administration block.