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SUDAN DEVELOPMENT CORPORATION JOINT VENTURE SONDOS AGRICULTURAL PROJECT FREE TRADE ZONE BUSINESS DIRECTORY
SONDOS AGRICULTURAL PROJECT



Facts & Opportunities
History:
The idea of Sondos Agricultural Project goes back to 1991, when the Government of Khartoum State decided to exploit the areas of production of food, livestock and other cash crops. Khartoum State took the initiative, which was eventually followed by two other states, the Gezira and the White Nile. Based on the recommendations made by the team of national consultants, the East Jebel Awlia Development Company Limited was founded as a public company in May 1992 to sponsor the Project.

General Objectives:
. To increase the production of grains, vegetables and livestock, thus ensuring food supply to a large segment in Khartoum and neighbouring states.
. To widen investment and job opportunities in the fields of agriculture and related industries.
. To promote social development services in the area and to absorb new agricultural settlements, thus contributing to the implementation of new construction and housing facilities.

Location & Area:
The Project is located 35 km to the south of the Khartoum capital city. It is demarcated by the Village of Taiba Al Hassanab at the North, the village of Wad El Kiril at the South, the Gezira Scheme at the East and the Khartoum-Kosti highway road at the West. The total area of the Project is estimated at 100,000 feddans. The net available area is estimated at about 76,000 feddans.

Project Scope:
The Project master plan is comprehensive. It calls for carrying out of an integrated development of the whole area including the provision of irrigation, agricultural aids, social development services, agro-industries, tourism and recreational activities.

The first phase, however, will be limited to the core project, which aims at the provision of irrigation infrastructures. These include the construction of canalization network, procurement, erection and commissioning of pumps and power sub-stations and the provision of the agricultural machinery. The remaining project components and activities will be elaborated into specific investment projects and will be promoted and implemented mainly by the private sector.

Technical Aspects:
Irrigation -The Project is designed to be irrigated by pumps from the reservoir of Jebel Aulia dam on the White Nile. The main pump station will be situated 1.5 km to the south of the dam, while a booster pump will be stationed at a distance of 14 km on the main irrigation canal which is 19 km in length and about 120 m.1. wide. It will provide water to different parts of the Project through a vast canalization network. The network consists of 6 Majors with 75 km length; 46 Minors with 225 km length and 887 Abu-Ishreen.

Crop Mix - The analysis of soil samples revealed that the soil is classified under Classes II and III. In spite of the fact that it contains some salts and alkali, it is suitable for growing a wide range of field crops, fodders, vegetables, fruits and forest trees, such as - field crops and fodders 60 percent; vegetables 20 percent: fruit trees and forests 10 percent; other activities 10 percent. Besides, the Project provides a good chance for raising livestock for milk and meat production.

Project Organization:
The Corporate Body - The studies and discussions conducted with different interested parties advocated the establishment of a public company to sponsor the Projecl. Consequently, the East Jebal Awlia Development Company Limited was founded and registered under certificate No. 6219 dated 17/5/ 1992 in accordance with the 1925 Companies Ordinance.

Financial Aspects:
Capitat Investments - The total capital investments are estimated at US$ 43.9 million, out of that some US$ 16.2 million will stand for the local component (36.8%), while the remaining balance of US$ 27.8 million will stand for the foreign component (63.2%).

Finance Plan - As part of its support to the project, the government authorized the project sponsor to dispose of all its land in the project area (25,000 feddans) and to use their proceeds for the development of the project. The proceeds are expected to meet all the investment requirements. However, to expedite implementation, the project authority is willing to receive external funds in the range of US$ 18 million mainly for the supply of pumps and power sub-stations.

Annual Operation of Stabilization - Annual operation expenses are estimated at US$ 4,6 million; annual revenues are estimated at US$ 11.7 million.

Debt Service Coverage - (DSC) is calculated at 4.73 times; (7,5) Internal Rate of Return; (IRR) is calculated at 23.3% .

OPPORTUNITIES
The government support to the project has enabled it to think of the different investment opportunities that can be developed in the area. The proposed opportunities are wide in range and different in magnitude to suit different types of investors.

Farms - For those who seek true rural life, the project avails a golden chance to select one or more of the following types of farms:

Farms With Housing Plots - Farms (10 & 5 feddan in size) with housing plots are available Farms With Housing Plots - Farms (10 & 5 feddan in size) with housing plots are available for sale (90 years lease contract). They are all supplied with fresh water, electricity and other public services. Farms of this kind are available in two different areas:

Farms Without Housing Plots - Farms of 10 feddans are available in the sectors of Wadi Al Arak and Al Amirya.

Al Gairawan Town - This is a new town specially planned to accommodate the project headquarters. In addition the town will embrace about 40 other blocks, most of which will be devoted for residential purposes. Each block will be divided into different housing plots ranging from 600 m2, 700 m2 and 900 m2. The town will be adequately supplied with the various public utilities and services such as schools, medical and health centres.. etc. Also it is planned that the town will allow for the establishment of a number of small scale industries and other services.

Agro-Industries:
Emanating from the importance of industrialization, a number of agro-based industries are envisaged to be established in the area. These will include such plants as animal feed mills, dairy plants, slaughter house, vegetables and fruits processing plants... etc. To accommodate these plants, two separate zones are demarcated in the northern and southern parts of Al Gairawan town, with a total area of about 500 feddans. Individual investors and investment companies are invited to submit their offers for one or more of the proposed plants.

Tourism Activities:
The project area is rich in tourism potentialities and other interesting attractions. If properly developed these potentialities can turn into endless amenities and recreational activities that can attract not only the project dwellers but also other visitors from all parts of Sudan as well as from abroad.

The project authority has demarcated an area of about 800 feddans along the White Nile bank for Baladna Park project. The basic idea of the project is to carry out a man-made park with various amenities reflecting the native cultural diversities in the Sudan. Joint-venture investors are invited to participate in the development of all of these activities.

Quick - Earning Investment Opportunities:
A number of areas have been demarcated in different parts of the project to accommodate such services and commercial activities that are expected to flourish following the rapid trend of urbanization in the area. These will comprise such activities as, metal works, carpentry workshops, grain milling etc.

SONDOS AGRICULTURAL PROJECT
Tel: 223047 - 223054 - 230481
Fax: 223052
KHARTOUM - SUDAN


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