Canal Sugar to Sign Three Major Contracts, Having a Strong Kick-Off to its’ Strategic Project
A strong kick-off for the project that will bridge 70% of the difference between consumption and production of Sugar in Egypt
Canal Sugar, an Egyptian Joint Stock Company, will be signing three major contracts on 28 April 2019; the first contract comprising three agreements with Al Khoyaref Group, a Saudi Conglomerate, to supply 1000 Fully Automated Centre Pivot irrigation systems, a maintenance agreement and Precision Land Farming operations agreement; the second contract will be signed with Sinoma CDI, a Chinese contractor and part of CNBM a fortune 500 Company, for the construction of the World’s Largest White Sugar from Beet plant to be delivered at the beginning of 2021; as for the third contract, it will be signed with El Sewedy Electric for the installation of Ultra High Voltage Over Head Transmission Lines from the main substation in West Mallawi, Menia across 50 km to the Project Site and the construction of Substations to feed the Beet Sugar Plant and the Large Scale Farm; Execution period agreed is 6-8 months.
The signing ceremony will be attended by Canal Sugar Chairman Mr. Jamal AlGhurair, MD&CEO Mr. Islam Salem, CEO of Al Khorayef Group Sheikh: Mohamed Al Khorayef, CEO of Al Khorayef Industries Mr. Abdullah Ibrahim Al Khorayef, Eng. Ashraf El Geweily CEO of Trans Orient for Marketing (an AlKhorayef Subsidiary), Mr. Liu Xiaoning, Vice President of Sinoma CDI, Mr. Ma Yabing, Director of Investment and Development Department, Eng. Medhat Maher, CEO of ElSewedy Electric Transmission and Distribution, along with top executives from the 4 companies. Deputy Managing director of the General Authority for Investment (GAFI)/ Advisor Mr. Mohamed AbdelWahab,
It is worth noting that Canal Sugar had signed a Bridge Loan Agreement in December 2018 worth USD 100 million and EGP 1.2 billion (USD 69 million) with a consortium of six banks to finance the purchase, construction and operation of its projects in West Menia. The Bridge facility is for one year until a Long-Term Debt Agreement estimated at USD 700 million is finalized. The joint-stock company, is 70% owned by UAE Investors Jamal AlGhurair and Murban Energy. The remaining 30% shares are owned by Al Ahly Capital Holding who are also the Debt Advisors.
The Company’s state of art Sugar Beet Plant is designed to produce 900k tons/annum and will provide direct and indirect 50k job opportunities in Upper Egypt. That is besides the Company’s reclamation of 181k Feddans (77k Hectares) of desert land in West Menia (as part of the Egyptian President’s 1.5 million Feddans Mega project). The land will produce 2.5 million tons of sugar beet annually, in addition to other strategic crops, such as wheat and corn. The Company will contribute to closing 75% of the Egyptian sugar gap (1.2 Million MT in 2018), replacing imports worth USD 900 million and exporting by-products worth USD 120 annually.