The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, has announced signing a financial structuring mandate with Suez company for methanol derivatives to finance the development of formaldehyde and derivatives project in Damietta, Egypt
The total project cost is estimated at US$60mn. The amount of planned debt financing is expected to be worth between US$35 and US$40mn.
The plant production aims to supply the local market, although certain quantities will be exported in the early years.
Ahmed Ali Attiga, CEO of APICORP commented, “APICORP has had a long and successful presence in Egypt. Supporting all areas of the regional energy and petrochemicals industries goes to the very heart of APICORP’s approach, the announcement is evidence of our continued and successful efforts to support and contribute to the stability and growth of the Egyptian economy.”
The Egyptian minister of Petroleum, H.E. Tarek El Molla, commented, “The project comes in line with the ministry's strategy to diversify financing sources of oil projects to reduce the need for hard currency and push forward economic development.”
