Cairo, Egypt, June 8, 2011— IFC,
a member of the World Bank Group, is providing up to $35 million in loans
toward construction of a new chemical factory near Egypt’s Red Sea coast,
an Indian-Egyptian joint venture that will employ hundreds of people, spur
the local economy and help develop cross-border trade.
Egyptian Indian Polyester Company S.A.E., a joint venture between India’s
Dhunseri Petrochem & Tea Limited, and two Egyptian government agencies,
will build the plant near the town of Ain Sokhna. The factory will produce
420,000 tons of polyethylene terephthalate (PET) per year, a chemical used
in the manufacture of lightweight plastic bottles for water and soft drinks.
The factory is expected to employ 800 people during construction and 500
people full time when operational.
The project is also being financed through a $65.5 million loan and an
$11.3 working capital facility provided jointly by Commercial International
Bank and Ahli United Bank.
“We are excited to embark on the development of our first PET factory
outside of India and are pleased to have IFC alongside as an investor,
along with Egyptian Banks CIB and AUB,” says Mrigank Dhanuka, Vice Chairman
and Executive Director of Dhunseri Petrochem & Tea Limited. “Egypt
is an advantageous choice for our investment, as the plant’s location
in Ain Sokhna will allow us excellent logistical access to the European
and North American markets, besides meeting internal demand in the country.
This will be a state-of-the-art project in this region, which will give
direct and indirect employment to more than 500 people and earn foreign
exchange for the country.”
The project represents a further step in the Egyptian government’s strategy
of increasing local value addition to the country’s oil and gas reserves,
will stimulate job creation in related industries, and is expected to help
grow Egypt’s foreign exchange reserves.
“IFC’s involvement in this project demonstrates our commitment to stimulating
cross-border investments as way to help developing economies overcome short
term challenges,” says Takuro Kimura, IFC Manager for Manufacturing, Agribusinesses
and Services in the Middle East and North Africa. “Additionally, the hundreds
of jobs this new PET plant will create show the private sector’s important
role generating employment.”
IFC is committed to fostering economic development in the Middle East and
North Africa through an integrated investment and advisory services program,
underpinned by the conviction that the private sector plays a key role
in reducing poverty and creating jobs, particularly for the region’s large
population of unemployed youth.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.