The loans, approved by the AfDB on March 17, 2010, will enable the ERC to construct and operate a new hydro-cracking/coking facility and ancillary units adjacent to the existing refining units of the Cairo Oil Refinery Company (CORC).
The ERC will use low quality atmospheric residue from CORC as feedstock and produce 4.8 million tons of refined products per year for the domestic market.
ERC was incorporated in July 2007. Private Egyptian and regional investors, led by Citadel Capital own 85% of its shares while the remaining is owned by Egyptian General Petroleum (EGPC). The ERC project will supply refined products to Cairo.
The project is in line with Bank Country Strategy for Egypt, which focuses on supporting infrastructure development, trade and economic growth. The institution’s 2007- 2011 assistance to Egypt will have two thematic strategic objectives aimed at promoting private sector development, and social development and protection.
Furthermore, the project goes with the bank strategy to support Egypt’s power sector and efficient use of its oil and gas resources. The project will create a large number of jobs for Egyptians, including 8,000 indirect employments during construction and 790 permanent positions during operations, as well as jobs generated by government revenues derived from the project.
