SCZone Goes Green: Egypt's Suez Canal Economic Zone Invests $21.64 Million to Promote Sustainability

  • 18-Apr-2023
  • Journalist: Jaideep

Egypt: Egypt's Suez Canal Economic Zone (SCZone) is taking bold steps towards promoting sustainability. Recently, the zone's El Nasr for Fertilizers and Chemical Industries (Semadco), Flex P Films, and Huhtamaki Egypt secured financing worth US$21.64 million to set up solid and liquid waste recycling facilities in the area. These companies signed the financing agreements with the Egyptian Environmental Affairs Agency (EEAA), marking the initial milestone of the collaboration protocol between the Egyptian Ministry of Environment and the General Authority for SCZone.

As part of the third phase of the Egyptian Pollution Abatement Programme (EPAP), the EEAA has announced its decision to financially support several companies. One of the beneficiaries is the SCZone wastewater treatment plant project, which will receive an investment of 11.8 million. This project aims to minimize pollution by treating industrial wastewater. The overall budget of the project is estimated to be €13.57 million.

The SCZone is a vast industrial area that spans 4,000 hectares where light and medium industries, commercial and business activities thrive, accommodating up to 80,000 jobs.

Flex P Films received a whopping 7 million in funding from the EEAA to launch their project on PET plastic recycling, which will take place in the SCZone. Recycling this type of plastic will create secondary materials, packaging, and even electricity. To complete the project, the entire investment required will be 16.07 million euros.

Similarly, Huhtamaki Egypt has been granted 2.84 million to construct an Ethyl Acetate solvent recovery unit. These solvents are necessary in various industries such as nitrocellulose, paint, printing, plastics manufacturing, and food production.

The Egyptian Ministry of the Environment and the General Authority for the Suez Canal Economic Zone (SCZone) have signed a Memorandum of Cooperation aimed at providing financial support and organizing introductory seminars at a sectoral level.

The objective of these seminars is to present how industries can benefit from the initiatives and services provided by the EPAP III program, as well as to train the authority's business development officers on the criteria for participation. The EPAP program, which amounts to over US$148 million, seeks to enhance the performance of the Egyptian industry, ensure their compliance with environmental laws and regulations, as well as reduce energy and resource consumption towards promoting sustainable development. Funding for the project is provided through loans from various development agencies, including the European Union (EU), the European Investment Bank (EIB), the French Development Agency (AFD), and the German development agency, Kreditanstalt fur Wiederaufbau (KfW).

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