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China extends back-up loans worth USD3.1bn to the naphtha cracking project

Wednesday 04 July 2018 04:43 PM

Mahfouz Taha
Mahfouz Taha

By Nadia Saber
Chinese lenders agreed to arrange USD3.1bn back-up loans for Carbon Company's petrochemical project slated to be built in Ain Sokhna, according to deputy chairman of the Suez Canal Economic Zone Gen.Mahfouz Taha.
" Setting up Ain Sokhna's petrochemical complex demonstrates how deep international financiers have confidence in the Egyptian economy, as they agreed to extend USD5.1bn loans out of a total funding worth USD10.9bn without taking any sovereign assets as collateral," Taha told Al-Mal newspaper on the sidelines of signing ceremony marking the construction of the project.
The Chinese funding will be tapped should  lenders fail to extend their own financing contributions, he continued, adding that the naphtha cracking project will become experimentally operational in the span of 38 months at a capacity of 4 million tonne per year.
Amenities and infrastructure have already been built to support the project, as they include a desalination station at 125,000 cubic meter per day, a 580 megawatts power plant, as well as sanitary and industrial drainage system and IT cables connections, he explained, adding that Ain Sokhna consists of up to 113 industrial complexes.