Ethiopia's Habesha Cement S.C has submitted loan application to the Common Market for Eastern & Southern Africa’s (COMESA) PTA Bank located in Burundi. The loan application ensued after the government owned Development Bank of Ethiopia reverse its assurance to finance more than half of the project cost to install a cement factory in Holleta town in the outskirt of Addis Ababa.

The cement factory is scheduled to be completed in 2014, will have a capacity to produce 1.4 million tonnes. The estimated cost of the project is around USD 130 million. Promoters of the company has enlisted 16,000 shareholders to raise 150 million birr at the time of the loan agreement for 1.5 billion birr with the Development Bank of Ethiopia back in 2011.

The Development Bank of Ethiopia was able to extend 30 percent of the amount requested by Habesha Cement S.C. Close to 47pc of Habesha is controlled by IDC and another South African firm, Pretoria Portland Cement (PPC) Company Ltd.

Habesha Cement S.C has hired the Chinese Northern Heavy Machinery Industries, Shenyang Co. Ltd., to carry out engineering, procurement and construction (EPC) contracts at a cost of 80 million dollars. Habesha has already advanced 7.9 million dollars to the turnkey contractor, according to company officials.

Source: Fortune