Damietta Port II

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  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 (“MTEU”) container terminal. This new terminal would occupy an area of 91 hectares (~12%) of the Damietta port (the Project or “CT-II”). 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 (“STS”) cranes; 40 rubber-tired gantries (“RTG”); 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 project will be implemented by a special purpose vehicle (“SPV”) named Damietta Alliance Container Terminal SAE (“Company”). The company is owned by a consortium that includes Hapag-Lloyd AG (39% ownership), Eurogate International GmbH (29.5% ownership), Contship Italia S.p.A. (29.5% ownership), Middle East Logistics & Consultants Group S.A.E. (1% ownership), and Ship & C.R.E.W S.A.E. (1% ownership). The Damietta Port Authority (DPA), under the Ministry of Transport, granted a 30-year concession to the company for the design, construction, and operation of the new container terminal.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 (“PSs”).