#Consulting

Due diligence of a sugar complex (organic sugar)

Mozambique

2015

The promoter wishes to establish and operate an integrated organic sugar production plant in southern Mozambique.

The project consists of:

  • 1
    Organic sugarcane cultivation on 4,345 hectares (ha).
  • 2
    The construction of a sugar mill and refinery with a processing capacity of 3,500 tons of cane per day, expandable to 5,000 TCJ.
  • 3
    The construction of a 12 megawatt (MW) cogeneration plant using the sugar mill's bagasse.
  • 4
    The implementation of various community development initiatives, including an outgrower program based on a fair trade benefit-sharing agreement.

The promoter approached the African Development Bank and commercial banks for financing. These banks mandated Sopex Consulting associated with SGS to carry out a due diligence of the project.

The objectives of the mission are:

  • 1
    Examine the technical, operational, financial and commercial aspects of the project with a view to validating or not the project and possible funding from donors.
  • 2
    Advise donors on the developer's operating capacity, the suitability of the proposed technology, as well as capital costs, operating costs, and production costs.

Activities include:

  • 1
    Technical and operational due diligence.
  • Provide an overall assessment of the technical and operational feasibility of the project on the agricultural component (growing practices, varieties, land development and planting program, organic sugar certification process, water management, crop protection, harvesting and transportation of sugar cane. Village plantation component. On the industrial component,overall design of milling and refining plants, technology used, power plant and production, operational costs, industrial and operational risks.

  • 2
    Due diligence of the sugar market
  • Provide a detailed analysis of local, regional (East and Southern Africa) and international demand and supply for organic and conventional raw and refined sugar.

  • 3
    Review of the regulatory and legal framework
  • 4
    Visit of the site
  • 5
    Formulation of advice and recommendations

Sopex Consulting

A global approach that integrates with technical, financial and economic data, taking into account a reasoned management of natural resources for a better preservation of the environment

Contact

Romeinsesteenweg 192, 1800 Vilvoorde Belgium

sopex@sopex.be

Tel : +32 475 68 65 92

TVA : BE 0711 716 417