Carbon Holdings plans to start implementing the largest petrochemical complex in the Suez Canal Economic Zone (SCZone) with investments of $10.9bn by the end of 2018.
Bassel Al-Baz, chairperson of the company told Daily News Egypt that agreements have been signed with a number of banks to borrow $5.6bn and the repayment period of the loan is 17 years, with interest ranging from 1.5 to 2%. The loan will begin to be withdrawn within 3 to 5 months after all the documents are completed.
The project is funded by British Export Finance, the American Export and Import, US Overseas Investment Corporation, and German Exports Authority, without sovereign guarantees.
Carbon Holdings has contracted with a number of companies to participate in the implementation of the project, including Linde, to undertake the work of the project in cooperation with Bechtel.
He added that Hassan Allam, PGESCO, Petrojet and CCC have been contracted to implement the ethylene and polyethylene complex and all auxiliary systems for the units serving the project from water and electricity, as well as engineering designs, implementation management, final operation and administration.
Carbon Holding is seeking to contract with Misr Insurance to provide insurance coverage for the first phase of the petrochemical project during the construction period.
The petrochemical complex is implemented on an area of 5m sqm in Ain Sokhna in the SCZone. The project helps to increase national income, provide job opportunities and increase exports.
Al-Baz said that part of the company’s shares will be offered on the Egyptian Exchange (EGX) next year, without giving further details.
Carbon Holdings announced earlier that it will be offering a slice of its shares on the Egyptian stock exchange and another in a global market.
“The petrochemical complex will not have any burdens on the state. The project is being implemented with all its services and needs,” said Osama Kamal, former petroleum minister and board member of Carbon Holding industrial company.
He said that the project contributes to bringing foreign direct investment to the Egyptian market without sovereign guarantees, unlike projects that needed guarantees.
Moreover, he added that the petrochemical complex will contribute to the development of the economic zone and is the basis for the launch of several complementary projects, that provide a great opportunity for Arab and foreign investors to work in Egypt.
He pointed out that the volume of trading when the project is running is at $14bn and exports of up to $8bn annually, thus contributing to the increase of Egypt’s total exports.
Carbon Group started its operations in Egypt in 1998 with the establishment of an ammonia production plant and became a holding joint stock company in 2008. The company includes a group of companies, including Oriental Petrochemicals, which produces polypropylene, and the Egyptian Company for hydrocarbons producing ammonium nitrate.
Its ownership structure includes a group of investors including Al Nuwais Investment Company (UAE) and Mazrui Energy Services (UAE).