Addis Aaba, Aug 2 - India continues its sugar quest in Africa, with Delhi-based Uttam Sucrotech winning the $100 million contract for expansion of the Wonji-Shoa sugar factory in central Ethiopia.

The Indian government has given a $640 million loan for three sugar factory projects: two expansion projects at Fincha and Wonji and a giant new factory at Tendaho in Afar Regional State.

The money is to be released phase by phase from India's state-owned Import Export (EXIM) Bank.

According to the agreement signed between India and Ethiopia, 85 percent of the total project works should be handled by Indian-based companies. Uttam Sucrotech, the sugar plant machinery manufacturing company, is also involved in some projects that are part of the ongoing construction of the Tendaho Sugar factory.

Indian embassy officials told IANS that Uttam Sucrotech has finally been awarded the Wonji project.

The $100 Wonji expansion project is to take place in the same area as the existing facility, which is about 100 km southeast of Addis Ababa, east Oromia region adjacent to the Nazareth-Asela highway, a manageable distance of 850 km from the Port to Djibouti.

The expanded factory is to have a crushing capacity of 6,250 tonnes of sugarcane per day.

According to the bid document, Uttam Sucrotech is to carry out all civil, structural, sanitary and drainage work for plant buildings and site development work, as per the technical specifications laid down in the document. It is also to do the design, manufacture, supply, delivery to the Port of Djibouti, the erection of mechanical and electrical equipment, and employer training.

JP Mukherji and Associates, another Indian-based company, carried out the technical consultation at the cost of 17 million birr ($1.36 million).

According to a Wonji official, other big Indian companies engaged in other projects, Overseas Infrastructure Alliance (OIA) and National Engineering, participated in the expansion bid.