Damietta Port II (IFC-45868)

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
  • International Finance Corporation (IFC)
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
Aug 7, 2024
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)
$ 135.00 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.
Grant Amount (USD)
$ 10.00 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
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 12, 2024

Disclosed by Bank Sep 19, 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 IFC, the Project is a container terminal with capacity of 3.3 million Twenty-foot equivalent unit located in Damietta Port on the Mediterranean Sea in Egypt. The Project will be carried under a 30-year Concession Agreement granted by the Damietta Port Authority under the Ministry of Transport. Construction is expected to begin in end of 2023 with initial operations expected to commence in January 2025.

The Damietta port is located on the East-Mediterranean Sea, at around 70km from the Suez Canal and 200km from the Greater Cairo Area. The port began operations in 1987 and currently operates seven terminals.

IFC is considering a financing of up to US$ 125 million A-loan and interest rate swaps of a loan equivalent exposure of up to US$10 million, for the brownfield expansion of a second U-shaped 3.3 Million Twenty-foot Equivalent Units container terminal. This new terminal would occupy an area of 91 hectares (~12%) of the Damietta port. The project will be designed to accommodate the loading and unloading of large container ships (at a length of 400m) and will include 8 berths (with a total of 1670m); 12 shore-to-ship cranes; 40 rubber-tired gantries; 16 spreaders; 12 lashing cages, space for temporary loading and unloading, and support facilities (e.g., office buildings, workshops, etc.). Once completed, CT-II will act as a transshipment hub in the East-Mediterranean basin for approximately 80% of the containers received, with the remainder serving the main consumption areas via the national road network. The project construction is expected to take up to 24 months starting construction in December 2023.

The early development of the infrastructure for CT-II, including land excavation and foundation works; construction and maintenance of the quay walls; and dredging of the access channel and basin, will be led by the DPA and is outside the scope of the proposed IFC investment but are considered associated facilities as per IFC Performance Standards.

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 by the IFC, the Project will be developed by Damietta Alliance Container Terminal S.A.E., a special purpose vehicle incorporated in Egypt, owned (39%) by Hapag-Lloyd AG (“HLAG”), (29.5%) by Eurogate International GmbH (“Eurogate”), and (29.5%) by Contship Italia S.p.A. (“Contship”), and 1% by Middle East Logistics & Consultant Group S.A.E and Ship & C.R.E.W. S.A.E each.

HLAG is one of the largest ship liners and operates the fifth-largest fleet of container ships worldwide. By the end of 2022, HLAG had c. 14,200 employees in more than 400 offices in 135 countries, and its vessels carried 11.8 MTEU, on par with 2021. HLAG is also a founding member of THEA, one of the biggest shipping alliances worldwide, which includes HLAG, Yang Ming, Ocean Network Express, and Hyundai Merchant Marine.

Eurogate is a top 15 independent operator of container terminals in Europe with twelve terminals located in Germany, Russia, Italy, Portugal, Cyprus, and Morocco and a total capacity of 16.9 MTEU and 69 container gantries, including Germany’s only deep-water container terminal. Eurogate has a longstanding relationship with HLAG through its operations in the German ports of Hamburg, Bremerhaven, and Wilhelmshaven, the three largest ports in Germany, and it also operates HLAG’s West-Med transshipment volumes at the TangerMED port in Morocco.

Contship is a subsidiary of Eurokai, one of the shareholders of Eurogate, and is currently controlled by Eurokai (66.6%) and Eurogate (33.4%). Contship operates (directly and indirectly) four port terminals with 23 STS cranes and 12 mobile cranes, one rail hub, and transport companies. On a standalone basis in the Italian market, the group handled a total of 1.5 MTEU containers with a market share of 16% in 2021.

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 Parent Company Industry and Trade owns DAMIETTA ALLIANCE CONTAINER TERMINAL S.A.E. Client Infrastructure
EUROGATE GmbH & Co KGaA KG Parent Company Industry and Trade owns DAMIETTA ALLIANCE CONTAINER TERMINAL S.A.E. Client Infrastructure
EUROGATE GmbH & Co KGaA KG Parent Company Industry and Trade contracts with Hapag-Lloyd Group Parent Company Industry and Trade
Eurokai GmbH & Co KGaA Parent Company Industry and Trade owns Contship Italia SpA Parent Company Industry and Trade
Eurokai GmbH & Co KGaA Parent Company Industry and Trade invests in EUROGATE GmbH & Co KGaA KG Parent Company Industry and Trade
Hapag-Lloyd Group Parent Company Industry and Trade contracts with Contship Italia SpA Parent Company Industry and Trade
Hapag-Lloyd Group Parent Company Industry and Trade owns DAMIETTA ALLIANCE CONTAINER TERMINAL S.A.E. Client Infrastructure

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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Damietta Alliance Container Terminals JSC:

Andrea Russler
Phone: +49 160 792 65 25
Email: Andreas.Russler@damiettaalliance.com
Website: https://www.damiettaalliance.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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