ERC Refinery

Promoter – Financial Intermediary

Joint venture between private sector investors and the public sector Egyptian General Petroleum Corporation (EGPC) as minority shareholder

Location

• Egypt

Description

Construction and operation of installations to process petroleum residues from domestic refineries to higher value and cleaner oil products for local markets. The project involves the construction of various units including for hydrocracking, coking, hydrogen production, hydrotreatment and sulfur recovery. The project has an intake capacity of 5.23Mt/a.

Objectives

The fuels produced are intended for the Egyptian domestic markets, and the project will contribute to Egypt’s security of energy supply by avoiding the import of the respective quantities of transport fuels. The conversion project will achieve a high yield of middle distillate and lighter components at high international quality standards, i.e. exceeding significantly the quality of products currently sold in Cairo.

Sector(s)

• Industry

Proposed EIB finance (Approximate amount)

EUR 500 million

Total cost (Approximate amount)

USD 3 billion

Environmental aspects

The project is a large refining project with associated temporary and permanent environmental impacts typical to such energy fuel projects. Within the EU such a project would fall under Annex I of the Environmental Impact Directive 85/337/EC and its amendments. The promoter is currently preparing an environmental impact assessment with the objective to conform, in addition to national legislation, also with practices and requirements of international lenders such as EIB.

Procurement

The promoter is a private company and the project will operate in a sector that is not subject to public procurement rules under the EIB Guide to Procurement. A private sector type procurement approach consisting of consultation and negotiation among qualified companies was followed for contracting a lump-sum turn-key contractor.

Status

Signed - 9/08/2010