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HE Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank, has announced signing a financial structuring mandate with Suez Company for Methanol Derivatives to finance the development of a formaldehyde and derivatives project in Damietta, Egypt. The total project cost is estimated at $60 million. The amount of planned debt financing is expected to be worth between $35 and $40 million.

The plant production is aimed to supply the local market, although certain quantities will be exported in the early years.

Dr. Ahmed Ali Attiga, Chief Executive Officer of Apicorp, said: “Apicorp has had a long and successful presence in Egypt. Supporting all areas of the regional energy and petrochemicals industries goes to the very heart of Apicorp’s approach, so today’s announcement is evidence of our continued and successful efforts to support and contribute to the stability and growth of the Egyptian economy.”

The Egyptian Minister of Petroleum Tarek El Molla witnessed the signing of the mandate and said: “The project comes in line with the ministry’s strategy to diversify financing sources of oil projects to reduce the need for hard currency and push forward economic development.” — SG