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Arab Republic of Egypt

Natural Gas Pipeline (Al-Arish – Aqaba)

 

Loan No.: 427 Interest Rate: 3.0 %
Beneficiary: East Gas Co. Grace Period: 3 years
Project Cost: KD 81.6 million Maturity: 20 years
Amount of Loan: KD 17.0 million Repayment: 35semi-annual installments
Date of Loan Agreement: 21/04/2002 First Installment: 3 years from the first disbursement
Date of Effectiveness: 15/12/2002    

 

Objectives:

The project aims at increasing the utilization of the Egyptian produced natural gas. This will be accomplished by exporting a portion of it to neighboring countries through the construction of a pipeline extending from Al-Arish to Aqaba  linking the Aqaba,  power station to the Egyptian natural gas network. This project represents the first phase of a planned gas network linking Egypt with Syria and Lebanon through Jordan.

Description:

The project, which is expected to be completed by the end of the first quarter of 2003, consists of  laying a 36 inch pipeline made up of two sections:  The first is a 250 km overland segment linking Al-Arish to Taba on the Red Sea, while the second is a submerged segment 15 km long from Taba to Aqaba. The project also includes a compressor station in Al-Arish, receiving and metering stations in Taba and Aqaba, a SCADA System, a cathodic protection system, valves, buildings and other needed equipment and facilities, along with consulting services, institutional support and technical training.

 The project consists of the following components:

 1. Overland Segment ( Al-Arish - Taba): This includes the procurement of pipes. valves, a cathodic protection system, a SCADA system, pipe coating and pipeline laying. It also includes the compressor station and provisions for procurement of the compressors when needed, in addition to the cost of acquisition of land and construction of buildings, site preparation and construction supervision.

 2.  Submerged Segment (Taba - Aqaba): This includes the supply of pipes, valves, a cathodic protection system, pipe coating and pipeline laying at the depth of 700 meters, along with engineering services and inspection.

 3.  Overland Segment (Agaba-Agaba Power Station : This consists of constructing a 1 km pipe including installation and supervision.

 4.  Institutional Support and Training: This includes the preparation of financial, administrative systems, a human resources structure and the needed support to establish an information management system including the procurement of computers and software. It also includes preparing an emergency plan and the required documentation.

Financing:

The Arab Fund loan covers about 21% of the project cost, the Kuwait Fund for Arab Economic Development participates with a loan of KD 31 million ( about 38% of project cost) and the East Gas Company will finance the remaining costs.

 

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