Giurgiulesti International Free Port

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In early 1995, the Moldovan government established Terminal S.A., a joint Moldovan-Greek venture to build and maintain the Giurgiulesti oil terminal. Tirex-Petrol (Moldova’s state oil company at the time) owned 41% of the shares in the terminal. Technovax, a company formed by several Greek construction companies specifically for the project, owned 39%. The main shareholders of Technovax, which was also to undertake the management of the project, were construction companies Avax, Hellenic Technodomiki, Triton and Planning Development Company. The EBRD held the remaining 20%. Terminal S.A. signed a B.O.T agreement with the Moldovan government, which was later approved by parliament. The total construction costs for the project were estimated to be $38 million. The project has been partly financed by EBRD in the form of equity and loans with the balance covered by the stockholders. In December 1996, EBRD signed a $19 million financing package to build the Giurgiulesti terminal. There was also a $9 million loan syndicated to several Greek banks (Greece-based banks National, Commercial and General). The 25 year agreement run through 2022; after that, the Moldovan government was to possess the terminal unless other arrangements were agreed upon. The cornerstone for the terminal was laid in November 1998. The construction of the terminal was advanced when the sides went into pending arbitration. The construction was frozen in 1999. In January 2005, the Government of Moldova and Azpetrol Azerbaijan Company signed a package of agreements on several investment projects amounting to US$250 million. Under one of the agreements, the strategic investor was to assume the direct debts of Moldova to the EBRD in the amount of $15.3 million and to undertake the completion of the Giurgiulesti oil terminal. $10 million out of the entire amount of investments was to be spent for the construction of the oil terminal. In addition, Azpetrol was going to build a cargo-and-passenger port in Giurgiulesti, to construct a nearby petroleum refinery, and to create its own network of 50 filling stations in Moldova. The investment program was to be financed from Azpetrol's funds, and by credits from international financing institutions and banks. $200 million out of the entire amount was to be spent for the construction of the petroleum refinery, $15 million for dry-cargo and passenger terminals, and $35 million for the construction of the refuelling stations and creation of the corresponding transport infrastructure. It was estimated that the oil terminal and the cargo-and-passenger port would be operational at the end of 2005, and another 5 years would be necessary for the construction of the petroleum refinery. Azpetrol was to lease the land under the construction of the terminal for the period of 99 years, after which period the investor could extend the term of lease. Three independent companies - Azpetrol SRL, Azertrans SRL, and Azpetrol Refinery SRL - were created for the implementation of all those agreements. In June 2006, Azpetrol sold all three companies to the Dutch investor EasEur Holding B.V., a subsidiary of Eastern Capital N.V., a venture capital fund. EasEur Holding subsequently renamed the companies to Bemol Retail, Danube Logistics, and Bemol Refinery. Danube Logistics, former Azertrans SRL, was responsible for constructing and operating the oil terminal. 20% of the shares in the project remained with the EBRD. The Danube Logistics direct investments in the Giurgiulesti oil terminal's construction amounted to about 23-27 million dollars. The terminal had been put in operation in the end of 2006. The throughput capacity of the terminal was about 2 million tonns of oil products per year. In 2008-2010 Danube Logistics planned to construct the multi-purpose dry cargo terminal and committed to spend US$60 million into the facility. As of end 2009, construction work on the new cargo terminal was due to begin in the first quarter of 2010. http://www.gifp.md/en/facilities/dray-cargo-terminal.html