Egypt’s Carbon Holdings predicts it will reach financial close for its $10.9bn Tahrir petrochemicals complex (TPC) in the third quarter of 2018, according to a statement released by the company.

The firm signed a total of 48 key documents for the petrochemicals megaproject on 30 June.

These included:

• Technology licence agreements with Linde, Univation Technologies and Novolen Technology
• Engineering, procurement and construction (EPC) contracts with Linde, Bechtel, Archirodon, Maire Tecnimont, Hassan Allam Construction and Consolidated Contractors Group
• Commercial agreements with Bayegan International and AOT
• Land and port agreements with the Red Sea Port Authority
• Project management consultancy (PMC) contracts with Bechtel
• Operations and maintenance agreements with GE for power and Suez Water

Carbon Holdings says the project will help double Egypt’s total exports, and create thousands of direct and indirect jobs. 

Carbon Holdings chairman and CEO Basil el-Baz said: “The message today is clear: Egypt is emerging as an industrial and export powerhouse. We have just made crucial progress towards the establishment of TPC as the centerpiece of a new, global-calibre manufacturing hub.

“This vision is to attract investment from global development finance institutions, export finance agencies and other sophisticated investors. Located in the Suez Canal Economic Zone, in the heartland of the nation’s oil and gas industry, TPC will both drive industrial development and lead export growth.

"Its $8bn in projected annual exports will by themselves result in a dramatic increase in Egypt’s total exports, while its output will make it possible for Egyptian manufacturers to make and export a range of products, including plastics and packaging, paints and solvents, adhesives, floor coverings and more.

“By virtue of simply existing, TPC will prompt Egyptian and global makers of plastics, packaging, paints, solvents, adhesives, floor coverings and components used in the automotive industry to set up shop in the Suez Canal Economic Zone.” 

Carbon Holdings says the TPC project will be financed by equity and a $5.4bn debt package.

“TPC and Carbon Holdings are at an advanced stage of securing financing from export credit agencies and other institutions,” the company says in its statement.

The institutions involved in financing talks include UK Export Finance (UKEF), Germany’s Euler Hermes and the Overseas Private Investment Corporation (OPIC), the development finance institution of the US government.

Principal construction at TPC is expected to take approximately four years from the initial drawdown of funds.