As part of its drive to help the Egyptian economy move to more environmentally friendly ways of production, 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.
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.