Egypt secures $3.7 billion for refinery

Egypt has secured $3.7 billion in project financing to upgrade a facility to be operated by the Egyptian Refinery Company (ERC) in one of the country's largest ever inward investments.

Prime Minister Kamal El-Ganzouri and project company representatives signed an agreement in Cairo earlier on Thursday with the deal expected to be closed within days.

The scheme was developed by local private equity house Citadel Capital and is a key project for Egypt as it will reduce the country's import bill by producing valuable light fuel products.

The new unit will take light products and fuel oil from EGPC's Cairo Oil Refinery Company (CORC) and turn them into valuable light products such as diesel, fuel oil, jet fuel and naphtha.

These products will then be sold back to EGPC under a take-or-pay contract with the product prices based on international norms.