One of the DAP factories has been built by a Chinese firm and the other by a Japanese company in the Chittagong Urea Fertiliser Ltd (CUFL) complex.

The prime minister opened the two units of DAP Fertilizer Company Ltd by by commissioning the production of DAP fertiliser for the first time in Bangladesh.

The DAP-1 project, involving Tk 510.64 crore, has been funded jointly by the governments of Bangladesh and China and constructed by Chinese company Complant China. The factory has the capacity of producing 500 tonnes of fertiliser a day.

Involving a cost of Tk 519.64 crore, the DAP-2 project, jointly funded by Bangladesh government and JBIC, has the capacity of manufacturing 500 tonnes of fertiliser a day. Toyo Engineering Corporation and Mitsui Ltd of Japan constructed the unit.

"DAP has the quality to meet the demand for both TSP and urea. So, farmers will not have to buy TSP and urea separately as they can meet the requirements of the two fertilisers by using DAP," said an expert at the newly-built factory.

The two new units will produce around 5 lakh tonnes of DAP fertiliser annually, which is equivalent to 5 lakh tonnes of TSP and 2 lakh tonnes of urea fertiliser.

"As a result, yearly import of 5 lakh tonnes of TSP and 2 lakh tonnes of urea will be reduced which will save a huge amount of foreign currency," according to an official.

The raw materials of DAP-1 are phosphoric acid, ammonia, and sulphuric acid while of DAP-2 are phosphoric acid, ammonia and silica. Ammonia and sulphuric acid are available locally while phosphoric acid has to be imported.

The PM visited the two units and watched the production process. Local MPs and investors were present during the inauguration.

Later, the prime minister inaugurated the newly-built Karnaphuli Export Processing Zone, set up on 222.42 acres of land, on the premises of the closed-down Chittagong Steel Mills at North Potenga on the outskirts of the port city.

Total plots in the project will be 211, drawing an estimated investment of $350 million and creating jobs for 52,000 Bangladeshi citizens. Annual export target of the factories in the EPZ has been set at $750 million.