Multinational investors bid $1.6 bln for petrochemical projects in Egypt's Safaga

Ahram Online , Tuesday 18 Jul 2023

The Egyptian government has received three offers from Egyptian and international investors for the production of phosphate fertilizers and phosphoric acid in the Red Sea city of Safaga with $1.6 billion in investments.

ٍSafaga Port. Egyptian Presidency.


The first project was proposed by the Egyptian Financial and Industrial Company and has a total investment cost of $600 million, said Adel Saeed, head of the General Authority for the Economic Zone of the Golden Triangle (GAEZGT), in an interview with Asharq Business.

The second project was proposed by an Egyptian businessman for the building of a factory to produce phosphate fertilizers and phosphoric acid with primary investments of $150 million, Saeed added.

He revealed that the third project was proposed by an Australian consortium led by consultancy and finance firm Lionsbridge and West Tech to build phosphoric acid with $875 million in investments.

Furthermore, Saeed stated that most of the new factories' output will be exported from ports like Safaga and Ain Sokhna.

The GAEZGT will consider the three proposals and oversee the projects. The authority was established in 2017 to control projects in Safaga, Quseer, Qena, and Qift including mineral extraction activities, industrial facilities, touristic zones, commercial hubs, agricultural areas, and different classes of urban areas.

The Egyptian petrochemical sector is attractive to local and foreign investors. Recently, the Abu Dhabi Fund for Development submitted bids to acquire stakes of up to 30 percent in Egyptian Ethylene and Derivatives Company and Egyptian Linear Alkyl Benzene Co. (ELAB).

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