Carbon Holdings, an Egyptian petrochemicals company, signed an EGP 4.2bn agreement with engineering company Dubai-based Drake & Scull International (DSI) to develop the Tahrir Petrochemicals Complex (TPC) project in Ain Sokhna, according to a Tuesday statement from DSI.
“DSI is pleased to be part of this international consortium delivering this vital project which will transform Egypt’s petrochemical sector,” CEO of DSI Khaldoun Tabari said.
“Egypt is our key market in North Africa and the project will enable us to further strengthen our position in the country where we already have a significant presence across the oil and gas, waste water and water treatment and hospitality sectors,” Tabari added.
Last month, the Ministry of Industry, Foreign Trade and Investment announced that Carbon Holdings signed a $1.7bn cooperation agreement with the Italian group Maire Tecnimont and the Dutch Archirodon Group.
“The agreement, awarded on a direct negotiation basis, envisages Engineering, Procurement, Construction and Commissioning [EPCC] activities executed by a consortium composed by Maire Tecnimont Group and Archirodon Group for an expected value between $1.7bn and$1.95bn, out of which 50% pertaining to the Maire Tecnimont Group,” the Italian company said in an official statement.
Maire Tecnimont will construct the project’s utilities and manage its offsite facilities at TPC. DSI will exclusively join the international consortium.
“The scope of work for DSI will encompass the complete OSBL [Outside Battery Limits] construction works and civil works, including storage facilities and ancillary buildings,” DSI’s statement read.
The construction of the petrochemicals complex will cost over $5bn.
“TPC is seeking to secure in excess of $3.4bn of funding and loan guarantees from the Export-Import Bank of the United States, the Export-Import Bank of Korea, the Korea Insurance Corporation and the Italian Export Credit Agency, SACE,” DSI added.
Carbon Holdings CEO Basil El-Baz has previously said that TPC is the first of its kind in Egypt, adding that it is expected to create 20,000 job opportunities during construction works, in addition to 3,000 jobs for engineers and technicians and 50,000 indirect job opportunities.
El-Baz added that the work is expected to proceed in the first quarter of 2015 and would be completed over a period of 46 months, adding that the post-completion trial period will last for about six months.