African Export-Import Bank (Afreximbank) has agreed to extend a USD 400 mn loan to the state-owned Chemical Industries Holding Company (CIHC) for a USD 1.2 bn phosphate fertilizers complex in El Wadi El Gedid governorate, a CIHC source confirmed to Enterprise.
El Wady for Phosphate Industries and Fertilizers (Waphco), a subsidiary of CIHC, is responsible for constructing, operating, and maintaining the complex.
The cost of establishing the project is estimated to be around USD 1.2 billion, instead of the previously reported USD 1 billion by Asharq.
The plant will have the capacity to produce one million tons of phosphoric acid annually, which is a crucial feedstock for phosphate fertilizers. Assuming that the financing is secured, construction is expected to commence in 1H 2024.
Furthermore, discussions are ongoing with local and international lenders to secure most of the remaining finance. CIHC will also contribute from the proceeds of the sale of EGX-listed Paint and Chemical Industries (Pachin) to National Paints Holding. Bank of Alexandria is the financial advisor representing the government in negotiations with Afreximbank and other lenders for the facility.
In addition, several local and international companies have proposed to build three other fertilizer and phosphoric acid plants in the Golden Triangle region of the Eastern Desert, known for its high concentration of phosphates.
