Damietta Container Terminal II Loan (EBRD-53313)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Egypt
Geographic location where the impacts of the investment may be experienced.
Specific Location
Damietta
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 4, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Damietta Alliance Container Terminal S.A.E.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 125.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 125.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 665.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Media Documents
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Nov 14, 2023

Disclosed by Bank Aug 16, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the EBRD, the project consists of a senior loan of up to USD 125 million in favour of the Damietta Alliance Container Terminal, a special purpose vehicle established to develop a second Container Terminal in Damietta Port (CT II) on the basis of a 30-year Build, Operate and Transfer Concession Agreement granted by the port landlord, Damietta Port Authority.

The Loan is part of a financing package of USD 455 million expected to be co-financed by the Asian Infrastructure Investment Bank, Deutsche Investitions und Entwicklungsgesellschaft, the International Finance Corporation, and Proparco.

The Project will support the development of the superstructure and purchase of equipment for CT II thereby significantly increasing Damietta Port's competitive position. The Project promotes private sector participation in the infrastructure sector, which will help Damietta Port become a strategic transhipment hub in the East Mediterranean.

The Project will also support human capital development within the Damietta Region by broadening access to market relevant skills and training in the sector, and helping reduce the skills gaps in the region by developing a skills development strategy responding to emerging and future needs of the ports and logistics sector.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on Eurogate's website, a new terminal will be built in the port of Damietta/Egypt. For this purpose, a Joint Venture was founded to develop and operate the new “Terminal 2” in the port. The Joint Venture “Damietta Alliance Container Terminal S.A.E.” consists of three core shareholders which are Hapag-Lloyd Damietta GmbH (39%), Eurogate Damietta GmbH (29.5%) and Contship Damietta Srl (29.5%). Two other partners, Middle East Logistics & Consultants Group and Ship & C.R.E.W. Egypt S.A.E., will each hold 1%.

As stated by Bloomberg, Contship Italia S.p.A. provides transportation services. The Company offers marine transportation services. Contship Italia serves customers globally.
EUROGATE GmbH & Co. KGaA, KG provides marine support services. The Company offers container handling, intermodal transport, packaging, repairs, and maintenance services. EUROGATE serves customers in Europe.
Hapag-Lloyd AG operates as a container shipping line company. The Company offers transportation of goods by sea, road, rail, and inland waterway vessels. Hapag-Lloyd serves customers worldwide.
As stated on the companies' websites, Ship & C.R.E.W. was established in 1993. Strongly present in all Egyptian ports, it is a market leader in Port Operations, Container Service and Land Transport.
Middle East Logistics and Consultant Group – MELC is a shareholding limited liability company, established in 2009 by a group of professionals in the shipping and logistics field, offering “Service by design”.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Contship Italia SpA Client Industry and Trade
- - - - EUROGATE GmbH & Co KGaA KG Client Industry and Trade
- - - - Hapag-Lloyd Group Client Industry and Trade
- - - - Middle East Logistics and Consultant Group – MELC Investor Industry and Trade
- - - - Ship & C.R.E.W. Egypt S.A.E. Investor Industry and Trade

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Client - Damietta Alliance Container Terminal:

Andreas Russler
Email: Andreas.Russler@Eurogate.eu
Phone: +49 151 6568 7154

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

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How it works