Four Banks Plan to Pump $150 mln for New Power Station in Alexandria

The National Bank of Egypt (NBE), Banque Misr, Banque Du Caire and Faisal Islamic Bank of Egypt are planning to sign the final contracts within this month regarding the finance of new power station in Alexandria which supplies energy for both ethylene and polyethylene compounds.

An official source told Amwal Al Ghad the production capacity of the station up 70 MW, adding that the value of loan reached $150 million (EGP 1.1 billion),where the banks have decided during the last period to raise the value of funding from EGP 800 million to EGP 1.1 billion as result of the high price of US Dollar within the last period.

The NBE , Banque Misr, Commercial International Bank (CIB), Banque Du Caire and the Arab International Bank(AIB) have provided $ 1 billion financing  in order to establish both ethylene and polyethylene compounds in Alexandria’s area of 170 feddan and its cost reached EGP 11.5 billion with Egyptian national investments.

The Egyptian national funded banks contributed with 65%, so the project will allow around 10 K indirect and direct job opportunities.

The loan is the largest as it has been arranged by the national banks for the projects , and the contributions are distributing with 20% for the Egyptian Petrochemical Holding Co. (ECHEM), 20% for Sidi Kerir Petrochemicals Co (SKPC.CA), 11% for the Egyptian Natural Gas Company (GASCO), 21% for NBE, 14% for the National Investment Bank (NIB), 10% for Banque Misr and 4% for Nasser Social Bank.

The funding process got award the best funding for petrochemical projects across Africa for 2012, and the prize has been received in a ceremony which held in United Kingdom-London.