Obajana Cement PLC

completed

The Obajana Cement Project (OCP) involves the construction and operation of a greenfield cement plant at Obajana, Kogi State, 220 km southwest of Abuja, the Nigerian capital. The project will have a combined production capacity of 4.4 million metric tonnes per annum (mtpa) and includes a 135 MW captive gas power plant; a 94 km gas pipeline; a limestone quarry with associated 7.5 km conveyor belt; a 13m high dam impounding a reservoir with a total storage capacity of 5.1 million m3 and a 328 unit housing complex for non-local staff. The estimated project cost is $798 million, to be financed with sponsor''s equity of $319 million (40% of the Project''s capitalization) and $479million in form of long-term debt from local and international lenders. The Sponsor is Dangote Industries Ltd (“DIL”), a leading Nigerian manufacturing and trading company. The project represents their first venture into cement production. Project implementation started in 2003 and commissioning is expected in 2005.