It is found at the lower Awash River Basin of Afar Regional State around Millie, Doubti, Assaeitta and Affambo Districts at a distance of 670 k.m. from Addis Ababa. It is located at 300 k.m. distance from Dijibouti Port which makes it more fit to export sugar. The project was started in 2006 with 50,000 hectares of land to be cultivated and will have a factory with a design capacity of 13,000 TCD a day. The factory construction contractor is OIA (Overseas Infrastructure Alliance) of India. The first phase of the factory has started trial production in October, 2014. It is currently in regular operation. Upon coming to its maximum crushing capacity, the factory will be able to produce more than 3 Million Quintals of sugar and 31,000 meter cube ethanol annually.
Out of the total hectares of the cane farm land the factory will cultivate 25,000 hectares sugarcane plantation field by its own while the rest 25,000 hectares are to be cultivated by surrounding out grower pastoralists. The factory has cultivated sugarcane over 20,866 hectares of land. The cane cultivation field is getting its water supply from Tendaho Dam and it is capable of irrigating 60,000 hectares of land having a capacity of holding more than 1.8 billion cubic meter water. Irrigable land has reached 22,835 hectares while construction of main canal and other canal structures are already built. The factory has made irrigable land available to pastoralists around which enable them to become semi pastoralist. 175 residence houses and 429 buildings are built at the factory command area.
It is the hugest plant in the country and it will take the lion’s share of the total amount of sugar produced in the nation. Out of the total 60 mega watt electric power it will be generating from its sugar bi-product it will export 38 Mega Watt electric powers to the national grid while the rest is consumed for its own regular operation.