The Egyptian Refining Company

Transcription

1 The Egyptian Refining Company Employment for the Hood 22 May 2014

2 2 The Setting: Egypt s Refining Industry 9 Refineries in 5 main locations Refinery Start-up Location Capacity (Bpd) AMOC 2002 Alexandria 34,447 MIDOR 2001 Alexandria 100,000 Assiut 1987 Assiut 47,000 Tanta 1973 Tanta 35,000 Ameriya 1972 Alexandria 78,000 Cairo 1969 Cairo 160,000 Alexandria 1957 Alexandria 100,000 El-Suez 1921 Suez 66,400 El-Nasr 1913 Suez 146,300

3 3 The Process: ERC s Refinery Upgrade Project CORC Refinery LPG Light Distillates (Naphtha, Gasoline) Market Middle Distillates (Diesel, Jet, Kerosene, Gasoil) Crude Oil Light Atmospheric Products Residue Heavy Fuel Oil 67% Egyptian Refining Company Heater Over the next years Egypt is forecast to experience: A large surplus of heavy fuel oil A growing deficit in middle (diesel and jet fuel) and light distillates (gasoline) Light Products Coke & Sulfur EGPC Market

4 The Neighborhood: What Prompted Us? Mostorod North West Cairo: 8 impacted communities plus linear impacts along transportation routes 1 million people within a 2 Km radius around the site Post-revolution context/ instability Impoverished communities, low skill levels, high unemployment rates Vulnerable groups, high rates of single-headed households, youth High illiteracy rates, vulnerable to misinformation and political manipulation Suspicion towards the motives of the Government and of large companies No local newspapers or radio stations NGOs (42) mainly focused on charity not community development No international or national development agencies active in the area 4

5 The Road: How Did We Get Here? 5 Early Stakeholder mapping and engagement by default ( ) Community Priority Needs livelihood and employment (youth), solid waste management, pollution induced health issues. Project commitment to hire 30% locally and share economic benefits, ERC is developing Signature Initiatives to build its Social License to Operate Very complex and defective labor market no national surveys or strategies, demand and supply disconnect, extreme turn over rates, poor human resource management Broaden employment efforts into an Employment Strategy - employment and skills development, local sourcing and capacity building suppliers Prepare for demobilization and end of construction build sustainable community development portfolio

6 The House: How Did We Fare Internally? 6 Committed and perceptive CEO Project Community Relations Forum, consisting of ERC as the Project Owner, Project Management Consultant, EPC Contractor and Sub-Contractors. Early engagement and strategic partnering with specialized development agencies and capitalize on complementary competencies in these partnerships. Project Conception Financial Close: Financial Close Start of Construction: June 2012-March 2014 Budget of 2 million USD annually Plans of accessing donor co funding and micro finance over time

7 The Strategy: Employment and Livelihood 7 Training for Employment ERC project, other industries and self employment Filling Employment Gaps ERC project and other industries Employment for Construction ERC project Market opportunities Capacity Building Collaboration Direct employment: ERC Construction Site ERC driven community development projects Other employers in the area Supplier opportunities for MSME s and Cooperatives: ERC s Contractors ERC driven community development projects Other businesses in the area Market Driven Vocational Training Soft Skills Training Business Development Services for MSMEs Business and Life skills for cooperatives Korean EPC Contractor Egyptian Sub Contractors GIZ Employment Promotion Program National Employment Pact International Labor Organization Care International Misr el Kheir Key Community Stakeholders

8 The Results: How Do We Document? 8

9 The Egyptian Refining Company 9