Developed by Qalaa Holdings, ERC is a state-of-the-art USD 3.7 billion refinery and one of Africa’s largest ever project finance deals that will eliminate 93,000 tons of Egypt’s sulfur emissions and improve the quality of the national petrol supply. The refinery will convert lowest value fuel oil into middle and light distillates that Egypt is in dire need of for its domestic consumption. ERC will have the capacity to produce 4.2 million tons of refined products per year, including 2.3 million tons of Euro V diesel representing more than 50% of Egypt’s current imports and 600,000 tons of jet fuel.

In June 2012, ERC reached financial close on the equity and debt components of the project financing, with Gulf and international investors, global export credit agencies and development finance institutions investing alongside Qalaa Holdings.

ERC is supported by USD 1.1 billion in equity provided by a broad spectrum of investors including the Egyptian General Petroleum Corporation (EGPC, which has invested USD 270 million for a 23.8% interest), Qatar Petroleum International (QPI, which has committed over USD 362 million for an effective 27.9% interest) and Qalaa Holdings (which has directly and indirectly invested over USD 250 million and holds an effective equity stake of 18.8%). Other participants in the funding include investors from Egypt and the Gulf Cooperation Council countries as well as development finance institutions, including the International Finance Corporation (USD 85 million, 6.4% ownership), the Dutch development bank FMO (USD 29 million, 2.2% ownership) and Germany’s DEG (USD 26 million, 2.0% ownership). The InfraMed Fund, the largest investment vehicle dedicated to infrastructure in the Mediterranean area, is also an investor with an effective ownership of 7.5% on an investment of USD 100 million.

The USD 2.6 billion debt package for ERC was signed in August 2010. The package includes USD 2.35 billion of senior debt and USD 225 million of subordinated debt. With the Bank of Tokyo-Mitsubishi serving as the global coordinator, institutions participating in the senior debt package include the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), the Export-Import Bank of Korea (KEXIM), the European Investment Bank (EIB) and the African Development Bank (AfDB).

EGPC’s Cairo Oil Refinery Company (CORC), the nation’s largest refinery with 20% of Egypt’s current refining capacity, will provide ERC with fuel oil as feedstock. ERC’s production of liquid products will be sold to EGPC at international prices under a 25-year offtake agreement. As an import substitution project delivering diesel and other high-value products to EGPC at the heart of the consumption market in Greater Cairo, the ERC project is viewed as strategically important to Egypt’s energy security.

EGPC estimates that ERC will result in more than USD 300 million in annual benefits to the government through avoided transportation and insurance costs, the elimination of product shipment losses, and revenues generated from storage and processing fees paid by ERC to EGPC companies.

ERC has taken receipt of its 350,000 square meter plot of land and overall project progress stood at 60% as of April 2015, putting the facility on track to begin operations in the first quarter of 2017. Over 10,000 workers will be employed during the construction phase of the project, and when the refinery is operational, more than 700 permanent jobs will be created.

Regulatory and environmental approvals for the project have been obtained and ERC has signed a lump-sum turnkey contract with GS Engineering & Construction and Mitsui & Co.

  • Mohamed Saad
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    Mohamed Saad

    ERC - Managing Director
    Mohamed Saad

    Mohamed Saad

    ERC - Managing Director

    Mohammed Saad Ibrahim holds vast experience in the energy sector. He began his career as an engineer at Nasr Petroleum in Alexandria in 1975. He later went on to work at Suez Petroleum where he held various senior level positions between 1977 and 2009, including Chairman of the Board. In 2009 Ibrahim moved to Al Nasr Petroleum Company where he served as Chairman for one year after which he became Vice Chairman of the South Valley Holding Company for Petroleum until 2012.

    Additionally, Ibrahim has held a number of executive positions in organizations including memberships in: the Geographical Committee for Suez and Sinai petroleum companies, and the Governing Council of Sukhna Refining and Petrochemicals. He was also the Chairman of the Suez Institute for Management Information Systems and Professor Emeritus at the Faculty of Petroleum and Mining Engineering and the Faculty of Science at Ismailia University. Ibrahim received a bachelor's degree in engineering from the University of the Suez Canal in 1975, and a Master's degree in Chemical Engineering from the University of Oklahoma in the United States in 1985. He earned his PhD in Chemical Engineering from Cairo University in 1995, and has held honorary memberships in a number of companies and scientific organizations.

  • Mostafa El Ramly
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    Mostafa El Ramly

    ERC - CFO
    Mostafa El Ramly

    Mostafa El Ramly

    ERC - CFO

  • Mostafa Al-Ramly
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    Mostafa Al-Ramly

    Chief Financial Officer
    Mostafa Al-Ramly

    Mostafa Al-Ramly

    Chief Financial Officer

    Mostafa Al-Ramly joined ERC in October 2009 as the Chief Financial Officer. Al-Ramly has over 25 years of experience in the chemicals industry, with the last 10 years spent as a CFO of the Egyptian Fertilizers Company (EFC), where he guided the project through construction, start-up, commissioning, operation and subsequent expansion. Al-Ramly has an excellent understanding of the Egyptian project development and operations environment.