A contract for the completion of a petrochemical complex in Arzew – Al-Hiwar, Algeria

Today, Sunday, a contract for the completion of a petrochemical complex in Arzew and its financing agreement were signed at the headquarters of the General Directorate of Sonatrach, according to a statement by the Sonatrach complex.
The Minister of Energy and Mines, Mohamed Arkab, and the President and CEO of Sonatrach, Toufik Hakkar, attended the signing of the contract for the realization of the petrochemical complex between the company with shares of STEP Polymers Spa (a 100% subsidiary of Sonatrach) and JV Petrofac-HQC, according to the same statement.
This contract relates to the formula (engineering – supply – construction) for the completion of a petrochemical complex at the level of the industrial zone in Arzew. The complex occupies an area of ​​88 hectares dedicated to the production of 550,000 tons / year of polypropylene, and the completion period was set at 42 months.
The expected production of polypropylene from this future compound will be allocated to meet the needs of the national market, while the surplus production will be directed for export to European, Asian and African markets, the source adds.
As a reminder, this contract was awarded on May 14, after a limited international consultation, in accordance with the procedures for awarding deals in force at STEP Polymers Spa.
The embodiment of this important project allows the creation of approximately 6,000 direct jobs during the completion phase, 450 jobs during the exploitation phase, and 2,000 indirect jobs.
The project will adopt the rules and standards applied at the national and international levels in the field of environmental protection, with the implementation of an extensive program for planting trees and vegetation at the level of Oran Province.
The second signing relates to a financing agreement between the stakeholder company STEP Polymers Spa and the National Bank of Algeria as principal supervisor.
This agreement will allow the financing of 70% of the project for the completion of the petrochemical complex for the production of polypropylene in Arzew, while 30% will be financed through self-financing, the same source indicates.