The International Finance Corporation (IFC) has approved a $144m financial loan package to Egypt’s Sonker Bunkering Company to its infrastructure projects.
The IFC is contributing $72m to the loan total, while the European Bank for Reconstruction and Development (EBRD) is contributing $22m and the Commercial International Bank (CIB) will provide $72m.
A total of $22m of the loan will be directed towards the development of Egypt’s first private Liquid Bulk Terminal at the Ain Sokhna Port on the Red Sea.
“The new facility will handle the import of three essential energy products, liquid petroleum gas, gasoil, and liquefied natural gas,” the IFC said in a statement.
“IFC’s financing will help create vital energy infrastructure for Egypt at a time when the demand for power is growing,” said Nada Shousha, IFC Country Manager for Egypt.
“Our aim is to spur job creation and minimize infrastructure gaps by increasing private sector participation in the economy. We also hope to send a positive market signal to international and domestic private sector investors.”
Philip ter Woort, EBRD Director for Egypt said: “Through this investment, EBRD aims at increasing energy security in Egypt by increasing capacity and introducing the highest quality and environmental standards.” “Installing the necessary infrastructure is crucial for energy security in Egypt as it will increase storage and handling capacity for gasoil, liquefied petroleum gas and natural gas imports.”
IFC will help Sonker develop a corporate governance plan and provide guidance on environmental and social issues in compliance with IFC’s Performance Standards, according to the statement.