Construction of KIMA 2 factory stopped due to rising energy prices

The construction works at the KIMA 2 factory in Aswan, which was estimated to cost LE5 billion, and the development of the old factory were both stopped when the two Italian companies and Orascom, who are doing the civil and electromechanical infrastructure, requested to renegotiate the terms of the agreement related to energy in light of the recent rise in prices.
Sources expected that the issue would be resolved in the coming few days.
However, Reda al-Adl, Chairman of the Holding Company for Chemical Industries that owns the factories, said he had not heard of the problem.
An official at KIMA said that there has been a shortage of gas, and that the management will send a memorandum to the chairman of the Holding Company and the Minister of Investment to discuss the situation with the Minister of Petroleum
He added that the banks suspended the loan that was allocated to the project until the problem is resolved.
Edited translation from Al-Masry Al-Youm

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