EBRD finances $11 million environmental upgrade of Egypt’s Carbon Holdings
New investments will help local petrochemicals producer reduce N2O emissions.
As part of its drive to help the Egyptian economy move to more environmentally friendly ways of production, the EBRD is providing local petrochemicals producer Carbon Holdings with a US$ 11 million loan.
The funds will be used to improve standards beyond the current industry level to meet international ISO certification standards at Egyptian Hydrocarbon Corporation (EHC), one of Carbon Holdings’ operating companies. In addition, the company will work on upgrading its approach to energy efficiency management and reducing N2O emissions to below European Union Best Available Techniques levels at EHC.
On the basis of improved environmental performance, the company will also acquire a majority stake in EHC. Carbon Holdings is a developer, acquirer and operator of midstream and downstream petrochemicals companies in the Ain Sokhna industrial zone in the Northwest Gulf of Suez in Egypt.
The EBRD investment is in line with the Bank’s new transition qualities, introduced at the beginning of 2017. The Bank argues that a well-functioning market economy should be competitive, inclusive, well-governed, green, resilient and integrated.
This financing will help setting this pilot project with Carbon Holdings that will pave the way for the construction of a landmark polypropylene production plant in Egypt and the Middle East and North Africa region.
Phil Bennett, EBRD First Vice President, commented: “We are pleased to partner with Carbon Holdings, a leading company in Egypt’s petrochemicals industry. With our loan we will support the introduction of higher environmental standards and strengthen the company’s competitiveness through an expansion of its operations, both of which are goals under our new transition concept.”
Basil El-Baz, Chairman and Chief Executive Officer of Carbon Holdings, said: “Carbon Holdings designs, constructs and operates all of its projects in compliance with the highest industrial standards imposed by the government of Egypt and the World Bank Group guidelines. This transaction with the EBRD affords us the ability to achieve an even higher level of environmental standard and efficiency at Egypt Hydrocarbon Corporation and we are delighted to have this opportunity. The EBRD has been a target partner for Carbon Holdings and we are very pleased to be able to close this transaction with them, which we hope will lead to greater cooperation in the future.
The EBRD has invested over €2.3 billion in Egypt through 43 projects since the start of its activities in the country at the end of 2012. The Bank’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services and support to transport services.
(EBRD Press Release)