Jingtang Harbor Expansion Project

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MIGA has issued a guarantee of €11.5 million to Dragados SPL (Dragados) of Spain for its investments in the Jingtang Harbor Expansion project in China. The coverage is for a period of up to 15 years against the risks of transfer restriction, expropriation, and war and civil disturbance. This contract replaces an earlier guarantee issued by MIGA to cover an equity investment into the first phase of the project. This expanded guarantee covers both the first phase of the project and additional investments for the second phase. Dragados made its initial investment into the project in 2005. The project involved the acquisition, operation, and management of two container berths in the port of Jingtang in Hebei Province. Since implementation in 2005, the project has made substantial progress in terms of increasing business volume of container throughput and improving the berths' operational and financial performance. Given the fast-developing business in the port, the current facilities for the container berths, including the container yard, are unable to meet the fast-growing demands for imports and exports of containers. Therefore, Dragados is making an additional investment for the expansion of the two berths in order to increase their capacity to handle container throughput. The project is expected to increase port capacity to handle container throughput. The project will also improve port functions and efficiency, introduce advanced computer management techniques, increase employment, and contribute to government revenues. The project will support growth in other sectors that include machinery, construction, transport, and other related regional economic development in the area. MIGA's participation in the project, and its assistance to the transport sector in China, is fully consistent with the World Bank Group's Country Partnership Strategy for China, in particular to promote private sector participation in physical infrastructure and services. The Jingtang Harbor Project and its expansion constitute the first transportation project in China for MIGA. MIGA's continued support was important for Dragados to proceed with the additional investment and to operate the project.

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