Proposal entails contractor providing interest-free loan for 15 per cent of cost
Egypts Alexandria Port Authority (APA) and China Harbour Engineering Company (CHEC) are still negotiating the financial terms of the contract to implement a multipurpose terminal at the Alexandria port.
The terminal will have an area of 500,000 square metres, with berths extending 1,800 metres and with a depth of 17 metres.
The scheme is estimated to cost $700m.
Under the current proposal, which is awaiting final government approval, a Chinese loan will cover 85 per cent of the cost, with CHEC providing the remaining 15 per cent interest-free.
The terminal will be owned by APA and operated and managed by a joint venture of APA and CHEC.
Other plans for the Alexandria port include restoring the berth depth at the port to between 14 to 15 metres by eliminating the clay that has built up over several decades.
It is understood that the port has not undergone any upgrades for the past 40 years.
Alexandria is the main port of entry for goods destined for the domestic market and handles approximately 60 per cent of Egypts foreign trade. The port is operated by Alexandria International Container Terminals (AICT), a joint venture of UKs Hutchison Port Holdings (HPH), Alexandria Port Authority, and Saudi Arabia-based Al-Blagha Holding.
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