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Project Overview

To address the increased demand for refined oil products in Egypt, the Egyptian Refining Company was established in July 2007 as a Law 8 Company to design, construct and operate a new petroleum processing facility adjacent to the existing Cairo Oil Refinery Company (CORC), which was built in 1969. ERC will further process products from CORC to produce additional high-quality petroleum products essential to Cairo and Upper Egypt consumers. CORC and the related storage facilities of the Petroleum Pipeline Company (PPC) are located in the Mostorod Petroleum Complex, 20 km northeast of Cairo in Qalyoubia Governorate.

Based on the debt financing led by citadel capital, the project will be owned by Egyptian and Arab private investors, Egyptian public institutions, international development institutions (IFC, DEG and FMD) and the Egyptian General Petroleum Corporation (EGPC) with 24% of shares.

The Egyptian Environmental Affairs Agency gave preliminary approval for the refinery based on its own technical reviews supported by Cairo University. The Governorate of Qalyoubia has also approved the Project.

ERC has signed a lump sum turn-key Engineering, Procurement and Construction (EPC) contract with a consortium consisting of GS Engineering & Construction of South Korea and Mitsui & Co. of Japan for the construction of the Project. Construction is expected to begin in 2012 with plant operations continuing for 25 years. The total cost of the Project, including financing costs, is expected to be approximately USD 3.7 billion. The prominent firm of Worley Parsons is providing project management consultancy services.

As a model of a public / private partnership, EGPC, CORC and PPC (EGPC affiliates) have agreed to:
·         sell to ERC atmospheric residue to be used as feedstock for the Project;
·         purchase all the high value petroleum products from the ERC Project; and
·         provide all the necessary storage and transportation capacity for all products.

This public/private partnership will enable ERC to produce products which will decrease Egypt’s dependency on petroleum imports.