TAQA OPI - Mgt PPT

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



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




USD 64 Million


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





USD 64 Million


Silicon Ships Production(2 Plants)

USD 153 Million

Crystal & Glass Production

(4 Plants)USD 306 Million


MINING COMMITTEE 16

2000 Ton reserves in Golden Triangle & adjacent areas

Gold Based Projects

Gold National Reserves 5,000 tons





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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Selected Power Projects Investments

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$16.7 bn

Thank You …

TAQA OPI - Mgt PPT

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