Investment Board Nepal is preparing to call for global bids to build a urea fertilizer plant under the public-private partership.

In this moment the Investment Board Nepal committee is studying the feasibility report details for the construction of the urea fertilizer plant, report which was prepared by a consortium of consulting firms and approved by IBN. This feasibility report has pointed out the possibility of using three types of energy sources to produce urea fertiliser: natural gas, electrolysis and coal. The report has recommended using natural gas to produce urea due to lower establishment and production costs. According to the report, it will cost $1.3 billion to install a coal-based plant, $983 million to install an electrolysis-based plant and $665 million for a natural gas-based plant. The feasibility study has recommended bulding a pipeline to ensure uninterrupted supply from any one of three Indian cities : Jagdishpur, Gorakhpur o Gaya; in order to import gas form Jagdishpur, the project will need to lay a 684-km pipeline.

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