Anchorage Investments is planning to appoint the main contractor for its Anchor Benitoite petrochemicals complex in the Suez Canal Economic Zone (SCZONE) by the end of 2023 with the goal of starting operations by the end of 2026.

In August 2022, the company had shortlisted Hyundai E&C, Samsung Engineering, Technip Energies and Tecnicas Reunidas to bid for the Engineering, Procurement and Construction (EPC) contract.

Ahmed Moharram, Founder and Managing Director of Anchorage Investments told Zawya Projects that the project’s is being developed at a total investment of $2.5 billion.

“Construction is planned to begin by the end of 2023 following the completion of the design phases and operations are scheduled to start at the end of 2026,” he said.

The project encompasses several production units producing 1.75 million tonnes per annum of petrochemical products and intermediates, including Propylene, Polypropylene, Crude Acrylic Acid, N-Butanol and Butyl Acrylate that are used in multiple industries such as pipes, packaging, paints, textiles, and pharmaceuticals.

The tendering process had commenced in March 2022.

Moharram said Anchorage Investments “aims to increase foreign direct investment (FDI) and enhance the economic value of natural gas derivatives” in Egypt.

He said the Russian-Ukrainian war has cast a shadow over the entire world economy and this was reflected in the slowdown in growth and the sharp increase in inflation rates.

The Anchorage Investments MD said the Egyptian economy is part of the world economy and is therefore affected by the crisis but has managed to weather it better due to economic reform measures of the past.

Past reforms included economic, financial and monetary reforms such as currency flotation, introduction of VAT, new investment law of 2017 and the freedom to transfer profits to overseas without restrictions.

"Under these structural reforms and reform initiatives, I expect FDI to register a gradual recovery in the coming years as the government focuses on improving the investment environment," he said.

SDC Code: 4550914158

(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)