October Dry Port Company secures US$29m loan from EBRD for first inland dry port in Egypt

EGYPTThe European Bank for Reconstruction and Development (EBRD), is set to provide a €25 million (US$29.44m) loan to October Dry Port Company for the construction of the first inland dry port in Egypt, in 6th of October City, west of Cairo.

October Dry Port Company is a special-purpose vehicle established by a consortium of El Sewedy Electric, Schenker Egypt and SLP Logistics.

The development and construction of the 6th of October Dry Port is the first public-private partnership (PPP) project in the sector and the first under the EBRD Green Cities programme in Egypt.

Egypt’s first inland dry port will function as an extended gateway to the deep sea ports located in the northern and eastern regions of the country, thus supporting the existing port infrastructure and logistics market.

The 6th of October Dry Port will help to make logistics more efficient as it will become the final destination of cargo and will provide efficient customs inspection and clearance procedures.

This will reduce congestion in the sea ports and create economies of scale through the use of intermodal rail services at the sea ports. It will also improve the overall reliability and cost-efficiency of the logistical processes for the dry port’s future clients.

Once operational, the 6th of October Dry Port will contribute to a reduction in road congestion, accidents and CO2 emissions by transferring some of the container traffic from road to rail.

“The 6th of October Dry Port PPP is a true milestone for both Egypt and the EBRD, marking the country’s first inland dry port PPP and triggering 6th of October City’s initiation into the EBRD’s flagship Green Cities programme,” Nandita Parshad, EBRD Managing Director for Sustainable Infrastructure, said.

“It is a shining example of how we can simultaneously increase the capacity of the existing port infrastructure and logistics services while pushing forward the green agenda.”

Through the EBRD Green Cities programme, technical assistance worth up to €350,000 (US$412,144) will be provided to the New Urban Communities Authority and 6th of October City to prioritise and address environmental challenges and to increase gender inclusion, through the development of a Green City Action Plan.

“We are very pleased with the successful signing of this flagship project, a new milestone in our long-term relationship with the EBRD,” Ahmed El Sewedy, President and CEO of Elsewedy Electric, said.

“The project will be the first dry port PPP in the sector and is the outcome of the fruitful engagement between ourselves, the Egyptian government and the EBRD.”

EBRD for Green Climate Fund

Meanwhile, EBRD has announced that it is securing a loan of US$25 billion to the National Bank of Kuwait Egypt (NBKE).

EBRD clarified in a statement that this step comes in its endeavors to boost renewable energy and energy efficiency in Egypt.

According to EBRD, 15 percent of the total loan amount is being co-financed by the Green Climate Fund (GCF).

“The funds will be on lent to Egyptian small and medium size enterprises (SMEs) and households to finance investments to mitigate the impacts of climate change. The application of new technologies is expected to promote the transition to an environmentally sustainable, low-carbon and climate resilient economy in Egypt,” it clarified.

It added that the GCF and EBRD’s partnership for transformation has seen the GCF support six EBRD program to the tune of US$830 million, catalyzing more than US$3.6 billion in total project value.

The GCF is the world’s largest climate fund, supporting developing-country efforts to respond to the challenges of climate change.

This loan is being extended under the EBRD’s Green Economy Financing Facility (GEFF), which provides finance and advice to private-sector businesses to support Egypt’s green economy transition. The facility has a financing pool worth €140 million (US$164.86m) for energy-efficiency and renewable energy investments.

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