Construction of Tana Beles Sugar Factory Number 1 Resumed

  • Factory expected to produce sugar in eight months requires 95 million USD

The remaining construction of Tana Beles Sugar Factory Number 1 resumed last week following Sugar Corporation’s and China CAMC Engineering Co., Ltd (CAMCE) agreement signed in January 2019 to complete construction of the factory very soon.

According to the agreement, the Factory is expected to produce sugar in eight months period.

Most of the 5.7 billion birr finance allowed by the Ethiopian Government is to be spent for the completion of Tana Beles 1 and Omo Kuraz 2 Sugar Factories which, previously, were being constructed by Metal and Engineering Corporation (METEC).

As per the agreement reached at with CAMCE, the 95 million USD allocated for the completion of the remaining construction and new related works of Tana Beles Sugar Factory Number 1 is less in comparison with the cost Sugar Corporation paid to METEC for same purpose.

In a related development CAMCE officials have received a welcoming by the leadership and staff of Tana Beles Sugar Development Project, Fendika Town residents and community members of the Project as well as Jawwi District Chief Administrator and members of the leadership of the district on March 31, 2019.

In another development technical and financial documents of the Chinese JJIEC Company are being evaluated by Sugar Corporation to reach at an agreement to take over the remaining construction tasks of Omo Kuraz Sugar Factory Number 1. If the documents are viable the Corporation and JJIEC would sign an agreement soon so that the Company will resume construction work accordingly.

When these two sugar factories begin production the number of sugar factories operational (Wonji Shoa, Metahara, Fincha, Kessem, Tendaho, Arjo Diddessa, Omo Kuraz Number2 and3) will leap to 10. They altogether will play significant role in fulfilling the goal set to satisfy local demand and export the product.

Construction of Tana Beles Number 1 and Omo Kuraz Number 1 sugar factories which has been carried out by METEC for the past six years has reached 65.79% and 80% respectively. When the two factories begin producing in full capacity after completing the remaining works, each is expected to produce 800 to 1 thousand tons of sugar a day. They will also have facilities to produce ethanol and generate electric power.

The new contractor of Tana Beles Sugar factory 1, CAMCE, is constructing Welkayit Sugar Factory too. Likewise, JJIEC, which showed interest to complete the remaining works of Omo Kuraz Sugar Factory Number 1, is contractor of Omo Kuraz Sugar Factory Number 5.

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