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Tuesday, 3 July 2018

Carbon Holdings plans to break ground on USD 10.9 bn petrochem complex before year’s end

Carbon Holdings could break ground on its USD 10.9 bn Tahrir Petrochemicals Corporation (TPC) by year’s end, CEO Basil El Baz is quoted in the domestic press as having said. The company issued a statement yesterday (pdf) with a full rundown on a Saturday evening ceremony that saw it sign some 48 key project documents on a world-scale petrochemicals facility that will deliver some USD 8 bn in projected annual exports and produce raw materials that will “make it possible for Egyptian manufacturers to make and export products including plastics and packaging, paints and solvents, adhesives, floor coverings, and more,” El Baz said.

Key economic benefits to Egypt include the creation of 20k direct jobs and 15k indirect jobs during the construction phase. TPC will buy some USD 1.5 bn worth of goods and services in Egypt during construction and will employ more than 3k skilled workers in the heartland of the nation’s oil and gas industry when operational. El Baz estimates that the company could create more than 200k jobs in downstream sectors when domestic industry starts using its products to manufacture other goods.

TPC’s financing will include a USD 5.4 bn debt package for which the company and Carbon Holdings are in advanced talks with institutions including UK Export Finance, Germany’s Euler Hermes, and the US Overseas Private Investment Corporation.

Who’s working on it? Key EPC contracts are now in place with our friends at Hassan Allam as well as Linde, Bechtel, Archirodon, Maire Tecnimont and Consolidated Contractors Group, among others.

What’s the timeline? Look for TPC to reach financial close in the third quarter of this year. Principal construction will take about four years from the initial drawdown of funds.

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