US Ex-Im Bank has approved a US$229.8mn long-term guarantee to back the proposed sale by Kellogg Brown & Root (KBR), a subsidiary of Halliburton, and other US suppliers of equipment and services to build an anhydrous ammonia plant in Sokhna Port, Egypt. The new plant will be built for Egypt Basic Industries Company (EBIC), an Egyptian exporter of ammonia.
EBIC proposes to build a greenfield 2,000 tonnes-per-day anhydrous ammonia plant, including a pipeline corridor connecting the ammonia production plant to product storage tanks located in Sokhna Port. The ammonia plant design will be based on the KBR proprietary Advanced Ammonia Process (KAAP).
Some 22 US companies from Texas, Oklahoma, Kansas, Illinois, Colorado and Kentucky will provide goods and services on the transaction.
“This project will create and sustain US jobs and lay the groundwork for potential follow-on business in Egypt for US exporters, while supporting Egypt’s industrial and economic development goals,” says Ex-Im chairman Philip Merrill.
The project company, EBIC, is expected to be owned by the following sponsors: KBR; PSK Holdings, an Egyptian petrochemical company; Orascom Construction Industries, a major Egyptian construction firm; Egyptian General Petroleum, the state-owned oil and gas company; and several other private investors.
The transaction is Ex-Im’s first limited recourse project financing in Egypt. With this type of private financing, the repayment is based on project revenues.