Safaga port

pending

The proposed project comprises the design, construction and operation of a new 776,000m2 multipurpose terminal with quay wall length of 1,100m2 in Safaga, Egypt (the “Project”). The Project will serve the national market and offering a diversified set of services, including dry bulk, container cargo (not currently offered at Safaga’s existing port) and Roll-on Roll-off (RoRo).Safaga bay is located in the Red Sea Governorate on the western coast of the Red Sea, 60km south of Hurghada and 435km south of the Suez port. The project will be implemented by a special purpose vehicle (“SPV”) named Safaga Terminal Operating Company S.A.E. (STOC or “the Company”). The company is under incorporation and owned by Abu Dhabi Ports Group (ADPG or the Sponsor). A 30-year concession agreement was signed in March 2023 with the General Authority for Red Sea Ports (RSPA) under the Ministry of Transport MoT. The project costs c.US$208.9mm including US$ 175.8mm for the port’s superstructure (cranes, IT equipment and civil works), US$ 15mm for the advanced payment for the concession fees, US$ 9.7mm for contingencies and other cost and US$ 8.4mm for the financing expenses. The sources of financing will be from a combination of equity in the form of share capital and shareholder loans (45%) and senior debt (55%), including up to US$ 50mm Senior A loan from IFC, up to US$ 11mm from the MCPP fund and with the remaining balance to be mobilized through Parallel Loans.Phase 1 of the project has been completed by RSPA who was responsible for the marine works consisting of land reclamation, quay construction (1000m length and -17.5m depth), dredging works immediately infront of the quay wall, dredging of an offshore approach channel at a depth of -19m and associated dredge dump area, installation of utilities including fresh water, waste water/sewage, wired telecommunications and electricity (11KV) transformer, waste water treatment plant (250m3/day), desalination plant (500m3/day). All of the works completed by RSPA mentioned above are considered associated facilities in accordance with IFC Performance Standards (PSs).The sponsor is responsible for Phase 2 of the project which involves the construction of the superstructure including the Container terminal (283,000m³) comprising container stacks and reefers (500,000 TEUs), container freight station, inspection areas, buildings, roads, gate complexes, substations and all other associated infrastructure required to support the container terminal with hybrid diesel, RTGs, reach stackers; Roll-on/ Roll-off units (44,000m² for 51,500 units); Dry bulk, break bulk storage and general cargo (196,000m² for 1.6mil metric tons); Warehouse; Future Liquid cargo (67,000m² for 1mil metric tons of storage capacity); Container repair area; Road network connected with existing roads; Concrete apron (48,000m²); Other utilities inter alia – firefighting; and ISPS fencing. Other components of the greater development of the area that are not considered associated facilities, as they do not meet all IFC PS1 criteria include the re-location of existing Logistics Hub (a staging area with amenities); re-location of external roadworks; quarry (approx. 1.5km SW of the new terminal); future railway connection; and the re-location of the Safaga Fishing Port.