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Egyptian Opportunities
May 2016
LEATHER INDUSTRIAL CITYOF ROBAIKI
A. Background
• Leather tanning and leather manufacturing are two of the oldestindustries in the Mediterranean and the Egypt.
• The integrated value chain encompassing these two industries hasbeen on top of Egypt’s manufacturing industries for over a hundredyears now.
• In Egypt, in the last few decades, the integrated value chain haswitnessed a serious deterioration mainly due to the concentration oftanneries in “Magra el Oyoon” , a total area of approximately 325,000square meter located right in the middle of Cairo.
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• The area limitation and serious environmental problems associatedwith the use of old technologies dwarfed the industries’ potential ofgrowth.
• A decade ago ,decision has been made to relocate the tanneries to anew city “Robaiki”, 40 km west of Cairo, and equip that city with allpossible means that allow the tanning and leather industries to growto their full potential and benefit from all existing opportunities.
• The project aims at increasing production, exports and create jobs.Estimations are in the range of over 1 Billion US dollars of combinedtanning and leather products and over 100,000 job opportunities.
Vision
To establish a state of the art industrial city specialized in leather tanning and leather products.
A. Background
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B. Description of the Project and its two components
The relocation component (component 1)
• Relocation of over 600 existing tanneries and supporting activitiesfrom to Robaiki; The new location is to allow for use of state of the art,environmentally friendly, tanning technologies. The new city is toprovide all types of support (technology center, training of workers,water treatment etc.) to make sure the highest quality finished leatheris produced.
The investment component (component 2)
• An area of a million meter square is located right next to the relocatedtanneries. The outskirts of the investment area already have fullaccess to electricity, water, gas, drainage, and roads to the main cities.The area is to be offered for foreign investment in export orientedleather products.
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FURNITURE INDUSTRIAL CITYOF DAMIETTA
A. Background
• Egypt and specifically Damietta is well known for its distinctivefurniture industry since hundreds of years ago due to its uniqueartisans and craftsmanship.
• . Accordingly the Prime Minister “Eng. Ibrahim Mahleb” placed thefoundation stone for “the Furniture City of Damietta” on 4th May2015 and announced the allocation of 331 acres for developing thiscity.
• The Ministry of Industry, Trade and SMEs is assigned to execute thisproject effectively and sufficiently.
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B. Furniture City Plan
DescriptionArea in Acres
1. Small and Medium Furniture Workshops Specialized in:Woodworking – El Quelema designs – Furniture finishing – Wood drying – Raw materials’ outlets – Glass and marbles
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2. Complementary Industries For Manufacturing:Screws – Hinges – Zippers - Paints and coatings – Glue in addition to manufacturing different kinds of wood as MDF
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3. Petro-Chemical Industries Includes:Environmental friendly projects as irrigations and greenhouse kits – Sanitation and water pipes – Foam insulators and Plastic containers
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4. Administrative Area For:Management and administrative offices – Logistics center – Storage area – Mosque –Catering and restaurants’ area
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5. Infrastructure Projects:(roads, gardens, parking area, electricity and water stations .. etc)
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C. Additional Projects
• Vocational training center to enhance the efficiency of workers.
• Huge marketing area with a large furniture show room.
• Hospital for prosthetic and limb surgeries.
• Waste recycling factory for Furniture workshops’ residuals.
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D. Expected Impact
• Creating 40,000 direct jobs and 120,000 indirect jobs.
• Developing the Egyptian furniture industry with a sustainable growthmanner.
• Stimulating the sector to meet international quality standards andmarket specifications.
• Raising the sector productivity and enhancing the value added.
• Increasing annual exports and penetrating new international markets.
• Strengthening supply chain linkages.
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GOLDEN TRIANGLE PROJECT
Introduction
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Golden Triangle ProjectAbundance of land
Geographical Location
Availability of Mineral Resources
Labor Availability
Location Advantages1- Geographical• Perfect location at the international trading route: Located at 80 km of
the Red Sea coast• Gate to the Local trading: Located on the River Nile (Qena Governorate)
2- Geological• The heart of the mineral resources belt adjacent to Red sea coast• Rich in Mineral Resources : Gold, Phosphates, Limestone, Kaolin Clay,
Tin, Heavy Metals• Availability of Oil Base Mud, which can be used as an energy source for
potential projects
3- Sociological• Availability of Labor in Upper Egypt.• Availability of Urban Areas for the Labors in Qena and Safaga• Close to touristic areas in Safaga, especially Health Resorts
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Annual RevenuesUSD 510 Million
1.1 Billion Ton reserves in Golden Triangle & adjacent areas
Phosphorus Based Projects
Phosphorus National Reserves 2 billion tons
• Utilization of up to 20% of Available reserves in Triangle & adjacent areas • Construction Period: 4 Years • Life time: 30 years
Annual RevenuesUSD 689 Million
Annual RevenuesUSD 255 Million
Exploration & Treatment (8 Plants)
USD 191 Million
Worth USD 12.8 Billion
Phosphoric Fertilisers Prod.
(4 Plants)USD 459 Million
Phosphoric Acid Production(4 Plants)
USD 919 Million
MINING COMMITTEE 14
230 Billion Ton reserves in Golden Triangle & adjacent areas
Limestone Based Projects
Limestone National Reserves 580 billion tons
• Utilization of up to 0.2% of Available reserves in Triangle & adjacent areas • Construction Period: 5 Years • Life time: 40 years
Annual RevenuesUSD 332 Million
Annual RevenuesUSD 128 Million
Exploration & Treatment (10 Plants)
USD 64 Million
Worth USD 293.5 Billion
Cement Production(4 Plants)
USD 536 Million
MINING COMMITTEE 15
1.5 Billion Ton reserves in Golden Triangle & adjacent areas
Kaolin Clay Based projects
Kaolin National Reserves 5 billion tons
• Utilization of up to 10% of Available reserves in Triangle & adjacent areas • Construction Period: 5 Years • Life time: 40 years
Annual RevenuesUSD 242 Million
Annual RevenuesUSD 51 Million
Exploration & Treatment (4 Plants)
USD 64 Million
Worth USD 5.1 Billion
Silicon Ships Production(2 Plants)
USD 153 Million
Crystal & Glass Production
(4 Plants)USD 306 Million
Annual RevenuesUSD 179 Million
MINING COMMITTEE 16
2000 Ton reserves in Golden Triangle & adjacent areas
Gold Based Projects
Gold National Reserves 5,000 tons
• Utilization of up to 20% of Available reserves in Triangle & adjacent areas • Construction Period: 6 Years • Life time: 40 years
Annual RevenuesUSD 472 Million
Annual RevenuesUSD 268 Million
Exploration & Treatment (3 Plants)
USD 1.3 Billion
Worth USD 3.1 Billion Refinery
(1 Plant)USD 536 Million
MINING COMMITTEE 17
Projects Summary
Annual RevenuesCould reachWorth
MINING COMMITTEE 18
1.1 billion
Reserves in Golden Triangle & adjacent areas (Ton)
Phosphorus
Limestone
Kaolin
Gold
230 billion
1.5 billion
2,000 USD 3.1 Billion
USD 5.1 Billion
USD 293.5 Billion
USD 12.8 Billion
USD 472 Million
USD 242 Million
USD 332 Million
USD 689 Million
Railways
Qenna / Safaga Railway• 223 km length, some parts are under rehabilitation.• It is Planned to operate 6 trains per day, each train
consist of 35 vehicle with loading capacity of 65 tons each.
• Daily transportation capacity is about 7000 tons/day which is equivalent to 2.5 million tons/year.
• Usage:– Materials transportation between Nile valley and
manufacturing areas.– Coal transportation from ports to manufacturing
areas.
TRANSPORTATION COMMITTEE 19
Safaga PortCan accommodate phase onetriangle needs and aftercompleting the futureexpansions stidies, a multiplepurpose berths will beestablished with a length of 5kilometers along the coastand a total capacity of 40million tons.
Marine Ports
TRANSPORTATION COMMITTEE
Abou Tartor Mining PortA Port development study wasprepared to raise its currentcapacity with a TIC ofUSD135 MM within 3 years for:• Bulk materials (Phosphates):
from 2.5 MM tons to 6.5 MMtons.
• Liquid materials: 2 MM tonsPhosphoric Acid & 1 MM tonSulphuric Acid
• General cargos: 3 million tons
Hamrawein Mining PortThe Port requires the followingimprovements:• Build water breaks• Berth extension from 70 meters
to 600 meters• Reaching 17 meters depth
instead of 11 meters• Make necessary preparations
for Coal handling & storagewest the International Roadwith a total area of 850thousand m2.
• Establishing railway from Safagato Hamrawein.
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ENERGY SECTOR
On-going Reforms in Egypt’s Energy Sector
Liberalization in progress for Gas and Fuel products pricing;
Phasing-out from Energy subsidies;
Implementation of FIT scheme for RE projects;
A pipeline of BOO / Private projects investments.
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OIL & GAS SECTORACHIEVEMENTS, OUTLOOK & OPPORTUNITIES
Eni signs heads of agreement with Egypt worth $5 billionEni signed heads of agreement with Egypt worth $5 billion over 4-5 years.This investment would generate production of 900 million SCF of gas, fromconcessions in the Mediterranean, Western Desert, Nile Delta & Sinai.
BP Inks $12 Billion Deal In EgyptAgreement will include a West Nile Delta project (exploration & resourceappraisal activities), East Nile Delta operations & Gulf of Suez operations.
BG Group signs $4 billion gas deal in EgyptBG Group has signed a provisional deal to invest $4 billion to supplydomestic gas in Egypt and for export to BG international customers.
Egypt raises gas price paid to Italy's EdisonEGAS has raised the prices it pays Edison for the natural gas they producefrom Abu-Qir field. The amended prices will apply to new discoveries.
Recent Updates
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Address IOC Arrears
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New Exploration Concession Agreements
56 new upstream Exploration agreements signed$12 billion minimum commitment
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Accelerate Existing Gas Development
Several ongoing gas projects To add around 6 bcf/d during the next 5 years Investments more than 35 billion $Main Projects include:
• North Alex• Salamat• Atol• WDDM 9b• Zohr
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Zohr Discovery
The Largest gas discovery in the Mediterranean. One of the largest gas discoveries in The World. 30+ TCF of GAS in place 1.5km water depth , 100 km2 acreage, 220km from shore Significant potential in adjacent Blocks
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Upstream Opportunities
18 new blocks offered in the two recent bid rounds of EGAS & Ganope
EGAS 2015 Bidding Round GANOPE 2015 Bidding Round
8 shallow-waterblocks 10 onshore blocks
(W.Nile, E.Nile, Sof Gulf of Suez) Data available
from EGAS &GANOPE
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Expand & Upgrade Infrastructure
Projects in Refining: $9 bn
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Transmission Projects
Planned Projects: $355 million
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Develop the Petrochemicals Industry
Projects in Petrochemicals: $9.7 bn
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Oil & Gas Investments
Investment by Sub-Sector to 2022(Ongoing – Planned Projects)
Total Investment through 2022: $48 billion
Completed & Ongoing projects: $29 billion
Planned Projects:$19 billion
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Opportunities and Way forward
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Egypt and Energy Hub
Suez Canal & Sumed Oil & Gas infrastructure (LNG
facilities, pipelines) In the middle of resource-rich
countries & major energyconsumers
Already initial Agreements withseveral Countries (Iraq, Cyprus…)
International maritime trade Suez and Alexandria world Class
refining centers and linking theDelta region to upper Egypt
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POWER SECTORACHIEVEMENTS, OUTLOOK & OPPORTUNITIES
Siemens $10.5bn deal to generate power in EgyptGerman industrial giant Siemens agreed to invest $10.5 billion ($10 billioneuros) in Egypt, with projects to build CC power plants that will boost thecountry's electricity generation capacity by up to a third. This include anew 4.4GW power plant in southern Egypt, a project to generate 2GW ofwind power and a new wind rotor blade factory. Agreement signed forSiemens to develop concepts for a further 6.6GW of combined cyclepower plants and ten substations
GE $2bn deal to generate power in EgyptGE signed a MOU to deliver 2.6GW of Gas-fired power to Egypt. GE willdeliver gas turbines to Egypt; part of a USD 1.9 billion deal to boost thecountry’s power output. The energy firm also announced plans to investUSD 200 million in a ‘planned economic zone’ being developed close tothe Suez Canal.
Recent Updates
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China to develop Egypt’s electricity transmission gridChina’s State Grid signed with EETC an agreement to develop Egypt’selectricity transmission grid at the cost of $1.8 billion.
Several MOUs signed for Electricity Power Generation Stations:1. ACWA Power & Masdar to establish a 1,500MW solar energy station
and a 500MW wind energy station, at the cost of $2.4 billion.2. ACWA Power to establish a coal power station generating 2,000MW
costing $7 billion. The power station is expandable to 4,000MW.3. Abu-Dhabi International Petroleum Investment Co. with Orascom,
announced plans to develop a 2,000-3,000MW coal-powered plant.4. Abu Dhabi Al-Nowais to build a coal power plant in the Oyoun Moussa
in South Sinai.5. BPI signed a 25-year PPA with EETC for BPI’s CCGT 2,300MW power
complex in Motobas, Kar El Shaiek.
Recent Updates (Cont…)
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Ensuring power generation security
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FiT/Quota Renewable Energy Program
Within the framework of the announced target of 20/20, Egypt hasannounced an interim target for the first regulatory period (2015-2017)is to contract 4,300MW of both solar and wind energy, its breakdown isas follows:
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300MW for small Solar systems 2,000MW of Medium and large size of Solar plants 2,000MW of Medium and large size of Wind plants
Debt & equity investment opportunity of between USD 6 billion (EUR 5.5bn)
and USD 7 billion through 2018
By Feb. 2016, Egypt will introduce a FiT for electricity from waste plants.
Renewable Energy Plan
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Renewable Energy Plan (Cont.)
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Renewable Energy Plan (Cont.)
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Selected Power Projects Investments
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$16.7 bn
Thank You …