SAGT Decarb

pending

South Asia Gateway Terminals (Private) (“SAGT” or the “Company”), (https://www.sagt.com.lk/) is Sri Lanka’s first public-private partnership international container terminal, operating at the Port of Colombo under a 30-year build-operate-transfer (BOT) concession awarded in 1999 by the Sri Lanka Port Authority (SLPA). SAGT’s sponsors are John Keells Holdings PLC, APM Terminals B.V, Maersk B.V, SLPA and Peony Investment SA. IFC was one of the original financiers, with a debt and equity investment in 1999. SLPA manages and regulates ports in Sri Lanka, including the Port of Colombo, Hambantota Port, and Trincomalee Port. SAGT is one of the five terminals operating at the Port of Colombo, a key transshipment hub for South Asia that serves India, Bangladesh, Pakistan, and the Maldives. The terminal handles approximately two million twenty-foot equivalent units (TEUs) annually. SAGT is currently a major container handling terminal with transshipment accounting for around 85 percent of the container handled at the terminal. Presently there are 10 STS cranes mobilized in different years with the design life of the existing cranes being 20-30 years and four of its cranes have exhausted their useful life. SAGT’s concession will expire on the 5th of September 2029.The proposed IFC investment of US$20 million will be used to finance the purchase of two new Ship-To-Shore (STS) twin-lift cranes or Quay cranes and may also support the procurement of thirty electric prime movers, including associated charging infrastructure, subject to SAGT’s operational and commercial considerations. Any Environmental and Social Action Plan (ESAP) requirement and associated E&S measures, or requirements referenced in relation to electric prime movers shall apply only if SAGT procures such equipment. The crane upgrades will support SAGT’s competitiveness and reduce fuel consumption and emissions. No replacement of rail gauges are envisaged as the four new STS cranes shall have the same specifications as per the existing ones and no any construction works are planned or are to be funded with the use of proceeds. For the electric prime movers, SAGT will require installation of the charging shed (around five dual chargers) with charging stations and other associated power infrastructure such as transformers with 33/11 kV lines, and associated substation equipment based on assessment of existing power infrastrucutre at the terminal. Existing maintenance shed will be customised and existing prime movers drivers will be trained on usage of electric prime movers. No dredging (including maintenance dredging) is required for the project as the new equipment will be installed within the existing footprint of the terminal. As per the Concession Agreement (CA)’s conditions, the project does not require any permit or approval from environmental authorities for the new equipment to be purchased as it is merely a procurement of four new STS cranes.