Name and Location
Ubombo sugar mill expansion and cogeneration project, Big Bend, Swaziland.

Project Description
The project entails the expansion of the Ubombo sugar mill, at Big Bend, adjacent to the Usuthu river, in the south-eastern region of Swaziland. The expansion provides for an increase in current production capacity from 220 000 t/y to more than 300 000 t/y, including an increase in power generation capacity using biomass as supplementary fuel for the mill boilers.

The project is also linked to the government-sponsored Lower Usuthu Smallholders Irrigation Project, under which a major dam and canal system have been constructed, and which will facilitate the development of some 5 000 ha of new outgrower cane land.

Value
The expansion is estimated to cost R1,5-billion.

Duration
The project was scheduled to be fully commissioned in May 2011.

Client
JSE-listed Illovo Sugar.

Key Contracts and Suppliers
Investec Capital Markets, Nedbank Capital and Standard Bank of South Africa (lead arrangers); Stefanutti Stocks Civils in joint venture with S&B Building Swaziland (contractors); Bosch Projects (engineering, procurement, construction and management services and the front-end package); and John Thompson (design and supply of cogeneration plant).

Latest Developments
Illovo Sugar has raised E940-million medium-term funding to finance the expansion of its Ubombo project. The medium-term funding is an eight-year facility, with all the funding raised from commercial banks in Swaziland on an amortising repayment profile.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Illovo Sugar, tel +27 31 508 4300 or fax +27 31 508 4499.
Investec Capital Markets, Rick Lupini, tel +27 21 416 3301 or email Rick.Lupini@investec.co.za.
Nedbank Capital, Sakkie Leimecke, tel +27 11 294 3329 or email SakkieL@Nedbankcapital.co.za.
Standard Bank, David Veale, tel +27 11 636 8195 or email David.Veale@standardbank.co.za.
Stefanutti Stocks Civils KZN, tel +27 31 700 1416, fax +27 31 700 1188 or email civilskzn@stefstocks.com.