On December 5 the Board of Directors of the African Development Bank (AfDB) Group approved a US$150 million loan to finance the Damietta container terminal on Egypt’s Mediterranean coast.
The project goal is to contribute to the growth of the Egyptian economy through the development of maritime transport at the international level. The project consists of: construction of quay walls; dredging of the access channel and turning basin; installation of the modern transshipment equipment; and development of the terminal area and container yard.
The port handles exports of agricultural products fertilizers and furniture as well as imported goods such as petrochemicals cement grains flour and general cargo – a total capacity of about 5.6 million tons annually. The existing facilities are unable to serve the potential demand of 4.5 million twenty-foot Container Equivalent Units (TEUs).
The project will create of 1600 permanent local jobs and allow African countries close to Egypt to export and import through Damietta.
US$200 million of equity will be financed by the sponsors and US$480 million of senior debt will be provided by the AfDB and two leading Middle Eastern commercial banks the Ahli United Bank (AUB) and Arab Banking Corporation (ABC).