$500 million project activated in Suez Canal Zone

CAIRO – 3 June: The agreement between the General Authority for the Suez Canal Economic Zone (SCZone) and Egypt’s Sonker Bunkering Company to build a Bulk Liquid Terminal project at Ain Sokhna port was activated, chairman of SCZone Mohab Mamesh said.

The total investment value in the project, which will be located on the Gulf of Suez, is $500 million, equivalent to LE 10 billion, Mamesh said in a Saturday statement.

Mamesh explained that the implementation of the agreement comes in response to instructions issued by President Abdel Fattah al-Sisi to resolve hurdles facing investors in the Suez Canal Zone.

Last month, the cabinet of ministers said in a statement that a “settlement agreement” was signed between the SCZone, DP WORLD Sokhna, and Egypt’s Sonker Bunkering Company.

In February 2016, the International Finance Corporation (IFC) said it will provide a $70m senior loan and an additional $22m mezzanine loan for the scheme, and will mobilise a further $52.5m from other investors.

Meanwhile, the European Bank for Reconstruction and Development (EBRD) said it is providing a $72m senior loan and a $22m mezzanine loan, while the Commercial International Bank (CIB) will provide $28m and a local currency loan of $44m equivalent in Egyptian pounds.

Considered part of the new Suez Canal Development Project, the Ain Sokhna project is expected to boost Egypt’s port sector by delivering key energy handling infrastructure at a time of declining capacity in existing ports and strong energy demand.