The Commercial Bank of Ethiopia (CBE) is to provide over 1.6 billion Ethiopian birr in loans to Hiber Sugar Factory S.C., Capital reported citing the announcement made by the management of Hiber.

The Bank will provide 70 percent of the 2.3 billion birr project.

“We have reached an agreement with the bank to collect the stated amount in different phases,” Menalachew Semachew, Acting Deputy Manager of Hiber, told Capital.

The project site of Hiber Sugar Factory is located in the Amhara Regional state, Awi Zone, Jawi Woreda in the Tana Beles Basin.

The Acting Deputy Manager also dismissed rumors of impending liquidation of the share company.

“The rumors that the company is liquidating are absolutely false; we have been working on getting the right amount of financing for the project, and that is exactly what we did with the agreement made with the Commercial Bank of Ethiopia,” he said.

Menalachew also announced Hiber has signed an agreement with Ethiopian Sugar Corporation to sell the sugarcane it is cultivating on its land.

Hibir Sugar S.C. is a privately owned Ethiopian company established by thirty investors to produce sugar, ethanol, organic fertilizer, biodiesel and electric power.

Source: Capital