| dc.description.abstract | The strategy, planning and orientation of Vietnam relating to Ammonia production
and the preliminary Ammonia market study have pointed that investing in an
Ammonia plant is important at this time and will be a good opportunity for Phu My
Fertilizer and Chemicals Company to leap into a new phase of development. A
financial feasibility study therefore is an essential step in order to confirm where or
not investing a new ammonia plant will be financially beneficial and feasible.
Detailed market research have shown that the amount of domestic Ammonia deficit
will be approximately 500 KT in 2016 to 561 KT in 2020 and more than 660 KTPA
from 2025 onwards. At the same time, the Ammonia deficit is estimated around 2.54
million metric tons in 2011, and then increases from 4 million metric tons in 2020 to
5.8 million metric tons in 2040. Therefore, with expected capacity of 450 thousand
metric tons of Ammonia every year, the products from the new Ammonia plant will
be supplied to domestic customers and the rest will be exported to countries in
demand like South Korea. In addition, natural gas resources are also available for this
capacity of the Ammonia plant.
The total investment cost (TIC) is estimated based on construction cost, equipment
cost, management cost, project consultancy cost, miscellaneous cost and contingency
and escalation cost. Without VAT, the TIC is estimated to be $396M and the TIC
including VAT is $469M. This study also evaluates the financial effectiveness based
on financial indicators like IRR, NPV and Pay-back period These results show that the
IRR is 30% , NPV is 1.5 billion USD and the total pay-back period is 3 years and 9
months. These financial indicators prove that the project of investing an Ammonia
plant is financially feasible and beneficial.
Keywords: financial feasibility study, ammonia plant | en_US |
