In a grand ceremony, under the patronage of Palestinian President Mahmoud Abbas, at the Jacir Palace Hotel in West Bank city of Bethlehem Saturday, the Palestine Investment Fund (PIF) launched the works at the first phase of the Palestine Cement Factory, a strategic national mega project.
PIF announced that the first phase of this national project includes the building of a cement mill with a capacity of producing one million tons of cement per year and an estimated investment that will mount to around $60 million US dollars. The project is managed, owned and built by Sanad Construction Resources Company; PIF’s subsidiary in the construction industries sector.
The first phase is expected to be completed in 18 months, with an overall investment in the Cement factory upon completion will be around $310 million US dollars, with a capacity of 1.3 million tons of cement per year.
The Chairman of the Board of PIF Dr. Mohammad Mustafa said “we can certainly and proudly describe this day as historic for the Palestinian economy as it sets another corner stone in the Palestinian quest for Economic independence.”
Dr. Mustafa explained that PIF has a mandate of contributing to the building of a strong and vibrant Palestinian economy, describing it as “an economy that is self-reliant”.
The strategy of PIF for the upcoming three to five years covers vital sectors such as the construction industries, energy, including natural resources and infrastructure projects, food industries, agriculture and investing in the Palestinian human capital.
“This mega national project, alongside the accumulated achievements that PIF has realized are vital steps towards freeing the Palestinian economy from the Israeli economic hegemony, and once realized, it would be a key contributor to the establishment of Palestinian statehood, and thus the advancement of the two states solution,” Dr. Mustafa said.
The Palestine Cement factory is going to be built in a remote area south –east Bethlehem over an area of 3300 Dunam of land (1 dunam =1000 m2) that was purchased from the Government by PIF.
The Cement mill – first phase of the project- incorporates three stages; raw material storage, grinding, and packing units.
It is expected to require 13 MW of electricity per year and 200 CM of water per day that are going to be extracted from the water reserves in the area. The project plans to use renewable energy including waste to energy based projects and treated water.
Sanad Construction resources projects are environment friendly and based on a closed-system concept, worth $3.5 millions US dollars of investment in the first phase. Upon the completion of the factory, the overall environmental safety investment would reach around $25 million US dollars.
The project is expected to create 500 direct jobs and more than 1000 indirect jobs during the construction and the operation phases upon.
The Palestinian market consumes currently around three million tons of cement per year at a cost of around $300 million US dollars, while this is expected to level up to demand to reach five million tons per year in five years.
At a national level, the growing demand and expected shortage of supply consolidate the importance of building of the Palestine Cement Factory.
Sanad Company announced a strategic plan aiming at providing locally produced cement and guaranteeing a sustainable supply of this vital material to the Palestinian market that includes a packing house in Jericho, the cement mill and cement factory in addition to the whole logistic transportation chain.
PIF is the national sovereign fund of the State of Palestine that works to maintain and develop the country’s assets and resources, leading its way towards achieving national economic empowerment. PIF investment portfolio covers the sectors of real estate, small and medium enterprises, capital market, health, tourism and a comprehensive social responsibility and social investment program.
Sanad Construction Industries Company is PIF’s investment arm in in industrial and production sectors related to construction industries. It’s main goal is to provide the Palestinian market with cement without interruption and offering competitive prices and high quality. For that end, Sanad is working within a holistic approach to enhance and empower the sector.
