Four Egyptian insurance companies are competing for an insurance policy tender to cover the construction works of El Hamra oil pipeline port project n New Alamein City, northwest of Cairo, according to sources.
The port is located in 15 km (9.3 miles) from New Alamein traffic station and it is far away about 120 km (74.5 miles) from west Alexandria.
The four insurers are Misr Insurance, GIG-Egypt, Suez Canal Insurance (SCI), and Orient Takaful Insurance, the sources with knowledge further told Amwal Al Ghad on Tuesday.
The policy is with total sum insured of 835 million Egyptian pounds ($48.9 million), comprising of 281 million pounds to cover local machines and equipment as well as 554 million pounds for other machines and equipment imported from abroad, the sources said.
State-run oil firm Petroject recently launched a policy bid to cover the establishment of 71 km oil pipeline between El Hamra port and oil refinery complex in New Alamein City.
“The insurance policy will include all contractors’ risks during the period of carrying out the project as well as the mechanical, machines, and equipment failure besides the coverage of the civil liability and natural disasters,” the sources said.
Moreover, Oil Minister Tarek el-Molla earlier said there is a petrochemical and refining major complex in New Alamein City that is considered one of the most important projects that is being currently under study.
The investment cost of the new complex is estimated at around $8.5 billion, el-Molla added.