Damietta port

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In April 2008, the 40-year Build Operate Transfer Damietta port project reached financial closure. The project was awarded in May 2006 by direct negotiation by the government of Egypt to Damietta International Ports Company (Dipco). Dipco was a Special Purpose Company owned by KGL PI (30%) of Kuwait, the China Shipping Terminal (20%), the Terminal Link Company of Egypt(20%), General Electric of the US (10%), the Aref Group of Kuwait (10%), United Arab Shipping Company (5%) and the Damietta Port Authority (5%). Under the term of the contract, Dipco committed to invest US$640 million to build and operate the new container terminal for 40 years. The facility was expected to be the largest container port in the region. The project was financed with US$160 million equity from the sponsors and a 15-year syndicated US$480 million senior debt provided by the African Development Bank (US$150 million) and two leading Middle East commercial banks, the Ahli United Bank (AUB) and Arab Banking Corporation (ABC). Pricing was reported to be about 100bp.