Poti Port: Phase 1

completed

The EBRD is considering the financing of the rehabilitation of existing Berth 14 within the existing Poti sea port. This Berth will be rehabilitated for use as a container terminal. Funds will be used for dredging, paving and replacement of part of the top end of the quay, together with the purchase of mobile harbour cranes, reach stackers and an empty container handler. The project is expected to have a significant transition impact. In the first instance, private sector participation will allow funds to be mobilised to develop the new port, which could not be achieved by the public sector alone. The end result will be Georgia’s ability to maximise its potential as a transit country. Second, the private sponsor is providing a new and experienced management team together with training programmes facilitating the transfer and dispersion of skills. Finally, the sponsor has been tasked and is implementing measures to improve corporate governance at the Port. The borrower is JSC Poti Sea Port Corporation, a private company which owns and operates Poti Sea Port. EBRD will provide a senior loan of up to EUR 8 million for Phase 1 of the port development plan. The remaining project costs will be financed by the client. EUR 10.1 million (for Phase 1). The project was screened B under the Bank’s Environmental and Social Policy 2008. Environmental and social issues associated with the rehabilitation of Berth 14 and its operation thereof can be readily assessed and mitigated, while the site itself is not located in a sensitive environmental setting as it is within the boundaries of the existing Poti port. Environmental and Social Due Diligence included a visit to the Project site by an EBRD environmental specialist, and was based on a 2009 Environmental and Social Impact Assessment required to meet Georgian requirements. Specific environmental investigations were also conducted in 2003 in relation to the Georgian permitting process associated with dredging. The existing ESIA and EBRD’s due diligence confirms that there are no sensitive receptors in the vicinity of Berth 14. Anticipated impacts are mainly associated with dredging, dust related to loading and unloading of bulk cargoes, and potential spills from vessels or onshore operations. Main mitigation measures include (but are not limited to): An Environmental and Social Action Plan, including monitoring requirements, is being prepared to reflect mitigations and will be implemented by the Project sponsor. None. APM Terminals Poti  52, D. Aghmashenebeli Street,  4401, Poti, Georgia Tel: +995 393 2 0660  Fax: +995 393 2 0688 E-mail: ceo@potiseaport.com  Website: www.potiseaport.com