Name and Location
Cairo Oil Refining Company (CORC) refinery upgrade, Mostorod, Egypt.

Project Description
The project involves the design, construction and operation of a new petroleum processing facility, adjacent to Egypt's largest existing CORC refinery, which is located at the Mostorod petroleum complex, 40 km north-east of Cairo. The unit is expected to produce over four-million tons a year of refined products, including 2,3-million tons of Euro V-grade diesel, the cleanest fuel of its type in the world, and the International Air Transport Association (IATA) worldwide specification jet fuel for use in the Egyptian domestic market.

The facility will process atmospheric residue supplied by the CORC refinery to produce additional high-quality petroleum products, such as gas, diesel, liquefied petroleum gas, jet fuel, kerosene, reformate, naphtha, sulphur and coke. Additionally, the project is expected to contribute to the improvement of the greater Cairo environment, as the production of these refined products will help reduce the emission of air pollutants, such as nitrogen oxide and sulphur oxide, into the atmosphere.

CORC will provide the refinery with fuel oil as feedstock. Egypt, an exporter of surplus fuel oil, is unable to meet domestic demand for light and middle distillates, such as diesel, and relies on imports of these products.

The refinery will sell its products to State-owned Egyptian General Petroleum Corporation (EGPC), under a 25-year offtake agreement at international prices.

Value
The project is valued at $3,7-billion.

Duration
The construction and operational testing of the refinery is expected to be completed in the second half of 2014, in time for operations to begin in 2015.

Client
Egyptian Refining Company (ERC), which is 85% owned by Egyptian and Arab private investors and led by Citadel Capital, with State-owned utility EGPC (15%).

Key Contracts and Suppliers
Worley Parsons (project management); KBC Advanced Technologies (technical representative); Société Générale Corporate & Investment Banking (CIB) (financial); Shearman & Sterling (legal adviser); Marsh (insurance); Nippon Export & Investment Insurance, Export-Import Bank of Korea, Japan Bank for International Cooperation (JBIC), European Investment Bank (EIB) and the African Development Bank (AfDB) (senior debt package); Mitsui & Company (subordinated debt); GS Engineering & Construction and Mitsui & Company consortium (engineering, procurement and construction (EPC) contract).

Latest Developments
ERC has obtained all regulatory and environmental approvals and has signed a lumpsum turnkey EPC contract, with a consortium consisting of GS Engineering & Construction and Mitsui & Company, for the construction of the project.

ERC has further announced that it has signed a debt package valued at $2,6-billion, to finance the construction of the refinery. The debt package, which was secured in August 2010, includes $2,35-billion of senior debt and $225-million of subordinated debt. The first drawdown under the senior debt facilities is expected in the next two months. Mitsui & Company, which is part of the consortium of contractors building the refinery, is providing $200-million of subordinated debt financing. The remaining $25-million is carried by the AfDB.

News of the debt package came just weeks after the International Finance Corporation agreed to invest equity of $100-million in the project.

In August, the EIB also committed a loan of $450-million towards the project.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
AfDB, tel +20 22 256 3790/3791 or fax +20 22 256 3792.
Citadel Capital, tel +20 22 791 4440 or fax +20 22 791 4448.
EIB communications department, tel +352 43 792 2000 or fax +352 43 796 2000.
ERC, tel +20 23 762 6428, or fax + 20 23 749 7646.
Export-Import Bank of Korea project financing department, tel +82 2 3779 6418, fax +82 2 3779 6748 or email ecg@koreaexim.go.kr.
JBIC corporate planning department, tel +81 3 5218 3100 or fax +81 3 5218 3955.
KBC Advanced Technologies, tel +44 1 932 242424 or fax +44 1 932 224214.
Marsh, tel +20 22 335 3881 or fax +20 22 335 3882.
Mitsui & Company corporate communications, tel +81 3 3285 7596 or fax +81 3 3285 9819.
Nippon Export & Investment Insurance, tel +81 3 3512 7650, fax +81 3 3512 7660 or email info@nexi.go.jp.
Worley Parsons, tel +20 22 359 5628 or fax +20 22 359 1038.
Shearman & Sterling, Brian Clayton, tel +971 2 627 4477, fax +971 2 626 8933 or email brian.clayton@shearman.com.
Société Générale CIB Tokyo, tel +81 3 5549 5800 or fax +81 3 5549 5729.