Project Description

Activities involved

Storage
Fumigation
Cleaning & Washing
Drying
Heat Treatment
Sorting & Grading
Pitting / Paste Making
Packing

Location
D.I. Khan (NWFP)

Land Area
2 Acres provided by Government of NWFP

Project Cost (approved)
Rs. 24.127 million

Date of Approval
07-05-2004

EDF Approved Funds
Rs. 20.400 million

Current Cost Estimate
Rs. 48.000 million

Management Set-up

A private limited had been registered with Securities & Exchange Commission of Pakistan to implement and operate the project. The Board of Directors of the company consists of the representatives from PHDEB, Agriculture Department NWFP, TDAP, Sarhad Development Authority and the private sector people/growers. The day to day affairs of the project will be run by staff to be hired from the market.

Project Capacity

Processing of 2000 tons of raw dates based on 120 days operation in a year i.e. one ton per hour

Current Status

The implementation of the project has been delayed due to various reasons, including frequent changes in the project location. Tenders for civil works are being floated and tender opening is expected in last week of March 2008.

The delay in project execution has resulted in exorbitant increase in its capital cost. Therefore, private sector investors are invited to join the Board on mutually acceptable terms.

Projected Financial Results*

(Rs.in million)

IFRR = 24.9%

BEP = 38%

Payback Period = 3.1 Years

Benefit Cost Ratio = 1.08

* Theses are based on the study prepared in 2004

Expected Project Benefits

• Employment Opportunities : The development and operation of the project will create direct as well as indirect jobs, resulting in improved per capita income and ultimately a better living standard for people of the area.

• Increased and Extended Product Availability : Reduction of produce losses/waste, thus resulting in better supplies during and relatively stable prices.

• Improvement of Quality of Foodstuffs : Cleaning / Processing of dates will help in preserving their quality and improvement of shelf life.

• Industrial Development : The establishment of the project will also induce other people to make investment in such activities which may result in development of allied industries i.e. engineering and packing.