EBRD finances Damietta Port’s ambitious expansion in Egypt
In the bustling world of international trade and commerce, a pivotal development is unfolding on the shores of Egypt. The esteemed Damietta Port, a linchpin in the Mediterranean’s maritime landscape, is undergoing a transformative expansion.
This ambitious project, backed by an international consortium, is poised to redefine the port’s role in global trade dynamics.
A Consortium of Global Proportions
The Damietta Alliance Container Terminals, an innovative Special Purpose Vehicle (SPV), lies at the heart of this venture. Formed by industry titans such as Eurogate, Contship Italia, Hapag Lloyd, MELC Group, and Ship & C.R.E.W, the alliance brings a wealth of expertise to the table.
Operating under a 30-year concession, their mission is clear: to catapult Damietta Port into a new era of efficiency and competitiveness.
Financial Foundations
The financial framework supporting this project finance is as robust as it is diverse. Spearheading the funding, the European Bank for Reconstruction and Development (EBRD) contributes a staggering US$ 125 million.
Close on its heels, the International Finance Corporation (IFC) and the Asian Infrastructure Investment Bank (AIIB) chip in with US$ 120 million and US$ 100 million, respectively. German development finance institution DEG and Proparco further fortify this financial bastion with contributions of US$ 60 million and US$ 50 million.
Environmental and Social Responsibility
In an era where environmental stewardship and social responsibility are paramount, the Damietta Alliance Container Terminals pledges to align with international best practices and lenders’ stringent guidelines.
Their commitment extends beyond mere compliance, encompassing the development of comprehensive environmental and social management systems.
Empowering Local Communities
The consortium’s vision transcends infrastructure; it’s a catalyst for community transformation. A cornerstone of this initiative is a skills development program, with a special emphasis on elevating women’s participation in the workforce.
In collaboration with local vocational schools, this program aims to enrich the lives of those in the Damietta region, fostering a skilled and diverse talent pool.
Strategic Location and Enhanced Connectivity
Damietta Port’s strategic positioning near the Suez Canal, coupled with direct road links to Cairo, Alexandria, and the Nile Delta, underscores its significance in the Mediterranean’s maritime narrative.
The port’s expansion is a timely response to the surging demand for container traffic in Egyptian ports.
A Competitive Edge
The expansion of Damietta Port is not just about scaling up its physical capacity. It’s about elevating its competitive stature in the East Mediterranean.
By tripling its container capacity, the port is set to emerge as a strategic hub, bolstering the Egyptian market with an estimated 80,000 direct and indirect jobs by 2038.
EBRD’s Unwavering Commitment to Egypt
The EBRD’s investment in Egypt, a staggering €11.2 billion across 170 projects since 2012, speaks volumes of its commitment. With a focus on bolstering the private sector, the bank’s involvement in the Damietta Port expansion is a testament to its belief in Egypt’s potential as a key player in global trade.
The Damietta Port expansion, underpinned by an international consortium, is not just an infrastructure project. It’s a beacon of economic growth, environmental responsibility, and social empowerment. As the world watches, Damietta is set to become a symbol of progress and prosperity, reshaping the landscape of international trade.
