Germany’s Uhdehas been selected by the local Misr Oil Processing Company (Mopco) to build a major fertiliser plant in Damietta. Both companies are also discussing setting up a second facility in the Suez area, sources close to the project say.Under the engineering, procurement and construction (EPC) contract, Uhde will build a 1,200-tonne-a-day (t/d) ammonia unit and a 1,925-t/d urea facility for MOPCO. A gas feedstock agreement for the project has been concluded with Egyptian Natural Gas Holding Company (EGAS). Misr International Bank (MIBank)is the mandated lead arranger for the non-conventional project financing portion of the estimated $300 million-400 million scheme. Industry sources say financial close has still to be achieved. MOPCO, in which Egyptian General Petroleum Corporation (EGPC)is the main shareholder, also plans to increase its shareholder capital from £E 677 million ($118 million) to £E 1,020 million ($178 million) in late October. Uhde is also working on two turnkey contracts worth an estimated $600 million-650 million for the construction of two fertiliser complexes in Ain el-Sokhna, near Suez, and Abu Qir, near Alexandria, for Egyptian Fertiliser Company and Alexandria Fertiliser Company. Both projects are due to be completed in 2006 (MEED 29:7:04). The German firm is one of two companies also bidding for the contract to build a major propane dehydrogenation (PDH) /polypropylene (PP) complex near Port Said for Egyptian Propylene & Polypropylene Company (EPPC). It is understood that evaluation of commercial proposals is still ongoing (MEED 9:1:04).