Czech Republic will invest $70 million on cement production in west Afghanistan, officials said Sunday.
The investment will be made in Herat province as part of a project to establish a cement factory in Zenda Jan district.
The agreement of the project will be inked in next two months with a Czech firm, Sirus Alaf, an Afghan presidential adviser on economy said.
The private sector of Afghanistan will also invest in the project around the same amount.
The factory is estimated to produce 1,600 tons of cement a day.
“It will transform the future of Afghanistan especially south-western zone,” Alaf said.
Officials expect that with the start of production of cement by the factory, price of the construction material would drop by half in Herat.
Afghanistan imports 4 million tons of cement each year and investing on cement production in the country is seen as crucial to its development.
Ghori factory in northern Baghlan province is the country’s only significant producer, but its contract has reportedly been cancelled.