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Chemical revival
24 May 2012
Egypt’s oil, gas, and petrochemicals sectors have bounced back from the fall of Mubarak faster than PPP. But local bank interest should allow that revival to happen.By Sarah Rundell.
There are two speeds to Egypt’s project finance market. On the one hand deals adding value to the oil and gas industry, like petrochemicals and fertiliser plants, continue to progress despite political uncertainty ahead of this June’s presidential elections. On the other, the revolution and its uncertain aftermath have brought progress on public private partnerships (PPP) to a halt.
Egypt’s PPP pipeline, one of the most promising in the MENA region, and which had demonstrated early promise, is now frustratingly frozen. Egypt offers the prospect of strong PPP dealflow in coming years, given its large population of 80 million, and increasing popular demand for better utilities, hospitals, schools and transport networks. These infrastructure upgrades would require as much as $45 billion in investment over the next five years, according to local investment bank EFG-Hermes.
Add to this a liquid domestic bank market, growing local expertise and a PPP law that was...
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