CAIRO: The International Finance Corporation, a member of the World Bank Group, said it will provide up to $35 million in loans toward construction of a new chemical factory near Egypt's Red Sea coast, according to a statement. The Indian-Egyptian joint venture aims to “employ hundreds of people, spur the local economy and help develop cross-border trade,” the statement read. Egyptian Indian Polyester Company S.A.E., a joint venture between India's Dhunseri Petrochem and Tea Limited, and two Egyptian government agencies, will build the plant near the town of Ain Sokhna. IFC said the factory will produce 420,000 tons of polyethylene terephthalate (PET) per year, a chemical used in the manufacture of lightweight plastic bottles for water and soft drinks. The factory is expected to employ 800 people during construction and 500 people full time when operational. The project is also being financed through a $65.5 million loan and an $11.3 working capital facility provided jointly by Commercial International Bank and Ahli United Bank. “We are excited to embark on the development of our first PET factory outside of India and are pleased to have IFC alongside as an investor, along with Egyptian Banks CIB and AUB,” said Mrigank Dhanuka, vice chairman and executive director of Dhunseri Petrochem and Tea Limited. Takuro Kimura, IFC manager for manufacturing, agribusinesses and services in the Middle East and North Africa, said, “IFC's involvement in this project demonstrates our commitment to stimulating cross-border investments as way to help developing economies overcome short term challenges.” IFC's new investments climbed to a record $18 billion in fiscal 2010.
