Last checked at 18 Aug 2015 07:00
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers
18 August 2015
DekelOil Public Limited ('DekelOil' or 'the Company')
World Bank Partnership Agreement
DekelOil Public Limited, operator and 51% owner of the vertically integrated Ayenouan palm oil project in Côte d'Ivoire, is pleased to announce that it has been accepted as an approved supplier to the World Bank-backed Projet d'Appui au Secteur de l'Agriculture de Côte d'Ivoire project ('PSAC'), which aims to support and improve the palm oil industry in Côte d'Ivoire. PSAC is 70% financed by both the World Bank and International Finance Corporation ('IFC') and 30% by the local Inter-professional Association of Oil-Palm Industry.
In recognition of the strong market fundamentals for palm oil, PSAC is targeting the planting of 10,000ha of palm oil plantations in Cote d'Ivoire. PSAC's objectives for 2015 include establishing a pilot zone in DekelOil's operating region which involves improving the quality of the roads and providing 5,000ha of land suitable for palm oil for smallholder operations.
Under the agreement, PSAC will subsidise 50% of Dekeloil's costs associated with preparing nursery plants for sale to smallholders. DekelOil has committed to allocating 140,000 plants grown at its state of the art nursery in Ayenouan in 2015 and 420,000 plants in 2016. All plants sold will be planted in the region where DekelOil operates its producing palm oil project in Ayenouan, which complements the Company's strategy to increase production of Fresh Fruit Bunches ('FFB') for input into its 60tn/hr Mill. It is anticipated these smallholders will become new trading partners with DekelOil as they come into FFB production in three years' time.
DekelOil Executive Director Lincoln Moore said, "DekelOil is the first to sign-up to this programme in Cote d'Ivoire and we are pleased to be working in partnership with the World Bank and IFC to expand the local palm oil industry, which supports thousands of local small holders, communities and families."
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For further information please visit the Company's website www.dekeloil.com or contact:
DekelOil Public Limited Youval Rasin Shai Kol Lincoln Moore
| +44 (0) 207 236 1177 |
Cantor Fitzgerald Europe (Nomad and Broker) Andrew Craig Chris Viggor | +44 (0) 207 894 7000 |
Beaufort Securities Limited (Broker) Saif Janjua Elliot Hance
| +44 (0) 207 382 8300 |
Optiva Securities Limited (Broker) Christian Dennis Jeremy King
| +44 (0) 203 137 1903 |
St Brides Partners Ltd (Investor Relations) Elisabeth Cowell Frank Buhagiar | +44 (0) 207 236 1177 |
Notes:
DekelOil Public Limited is a low cost producer of palm oil in West Africa, which it is focused on rapidly expanding. To this end, it has a 51% interest in one of the largest oil processing mills based in Côte d'Ivoire, which has a capacity of 70,000 tons of CPO. Feedstock for the Mill comes from mature palm oil plantations that have been secured under long term contracts with smallholders, however it also has nearly 1,900 hectares of its own plantations. Furthermore, it has a world-class nursery with a 1 million seedlings a year capacity.