Egyptian Refining Company

Developed by Qalaa Holdings, ERC is a state-of-the-art USD three.7 billion refinery and certainly one of Africa’s largest ever mission finance offers that may eliminate 93,000 tons of Egypt’s sulfur emissions and enhance the standard of the national 2000m3 storage tank petrol provide. The refinery will convert lowest value fuel oil into center and mild distillates that Egypt is in dire need of for its domestic consumption. ERC can have the capacity to provide four.2 million tons of refined merchandise per year, including 2.Three million tons of Euro V diesel representing more than 50% of Egypt’s current imports and 600,000 tons of jet gas.

U-tube heat exchangerIn June 2012, ERC reached financial shut on the equity and debt parts of the venture financing, with Gulf and worldwide buyers, global export credit score companies and improvement finance establishments investing alongside Qalaa Holdings.

ERC is supported by USD 1.1 billion in fairness supplied by a broad spectrum of buyers including the Egyptian Basic Petroleum Corporation (EGPC, which has invested USD 270 million for a 23.8% interest), Qatar Petroleum Worldwide (QPI, which has committed over USD 362 million for an effective 27.9% interest) and Qalaa Holdings (which has immediately and not directly invested over USD 250 million and holds an effective fairness stake of 18.Eight%). Other individuals in the funding include buyers from Egypt and the Gulf Cooperation Council international locations in addition to growth finance establishments, together with the International Finance Company (USD 85 million, 6.4% ownership), the Dutch development bank FMO (USD 29 million, 2.2% ownership) and Germany’s DEG (USD 26 million, 2.Zero% ownership). The InfraMed Fund, the most important investment vehicle dedicated to infrastructure in the Mediterranean area, can be an investor with an efficient ownership of 7.5% on an investment of USD a hundred million.

The USD 2.6 billion debt bundle for ERC was signed in August 2010. The package deal contains USD 2.35 billion of senior debt and USD 225 million of subordinated debt. With the Bank of Tokyo-Mitsubishi serving as the worldwide coordinator, institutions collaborating in the senior debt package embody the Japan Bank for Worldwide Cooperation (JBIC), Nippon Export and Funding Insurance coverage (NEXI), the Export-Import Financial institution of Korea (KEXIM), the European Investment Bank (EIB) and the African Growth Bank (AfDB).

EGPC’s Cairo Oil Refinery Company (CORC), the nation’s largest refinery with 20% of Egypt’s current refining capability, will present ERC with fuel oil as feedstock. ERC’s production of liquid merchandise shall be offered to EGPC at worldwide costs beneath a 25-yr offtake agreement. As an import substitution mission delivering diesel and other high-worth products to EGPC at the heart of the consumption market in Better Cairo, the ERC venture is seen as strategically essential to Egypt’s vitality safety.

EGPC estimates that ERC will result in greater than USD 300 million in annual benefits to the government by way of avoided transportation and insurance coverage prices, the elimination of product shipment losses, and revenues generated from storage and processing fees paid by ERC to EGPC firms.

ERC has taken receipt of its 350,000 sq. meter plot of land and overall undertaking progress stood at 60% as of April 2015, placing the power on monitor to start operations in the first quarter of 2017. Over 10,000 workers can be employed during the development part of the project, and when the refinery is operational, more than 700 everlasting jobs can be created.