Damietta Port’s second container terminal could see a USD 125 mn loan from the IFC

The International Fi nance Corporation (IFC) is expected to greenlight a USD 125 mn loan for the construction of Damietta Port's second container terminal on 30 October, according to a disclosure on the lender’s website.

The details: The project, valued at USD 665 mn, is led by a consortium of European companies including Hapag-Lloyd, Eurogate Terminals, and Contship Italia who signed an agreement with the Damietta Port Authority last year to develop and operate the terminal. 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.

Remember: The funding is part of a USD 455 mn financing package involving the IFC, the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions und Entwicklungsgesellschaft (DEG), and the French Development Agency’s private-sector investment arm Proparco. The AIIB is chipping in USD 100 mn, and EBRD allocated funding for a USD 125 mn loan last month.

This is a 100% private-sector venture: The three European companies will collectively own 98% of the joint venture, with Hapag-Lloyd holding 39%, and Eurogate and Contship Italia each owning 29.5%. Two Egyptian private sector firms — Middle East Logistics & Consultants and Ship & CREW Egypt — each hold a 1% stake.