The European Bank for Reconstruction and Development (EBRD) is set to approve a USD 125 mn loan for the expansion of Damietta Port’s second container terminal on 4 October, according to a disclosure on the lender’s website. The bank’s loan will finance the “superstructure and purchase of equipment” for the container terminal.

Where the money is going: The loan will finance the construction of the terminal, the cargo handling equipment, and workforce training. The lender is not financing dredging and quay wall constructions, which will be implemented by the Damietta Port Authority (DPA), according to the disclosure.

Details: The project, valued at USD 665 mn, is led by a consortium of European companies including Hapag-Lloyd, Eurogate Terminals, and Contship Italia. They will establish the terminal under a 30-year build-operate-transfer framework, increasing the port’s capacity to 4.7 mn TEUs by the third year of operation. The terminal will have a final capacity of 3.3 mn TEUs and is expected to begin operating by 2024.

Ownership structure: The joint venture will have ownership distributed among three European firms, with Hapag-Lloyd holding 39%, and Eurogate and Contship Italia each holding 29.5%. Additionally, two Egyptian private sector companies, Middle East Logistics & Consultants and CREW Egypt, will each hold a 1% stake.

Tags: