Egypt secures loan for CT near Suez

BAHRAIN's Ahli United Bank (AUB) and Arab Banking Corporation (ABC) have signed a US$480 million debt facility for a port project in Egypt with Damietta International Port Company (Dipco), reports in the Gulf Daily News.

The banks will each contribute 50 per cent of the loan to be used to finance the development of a new container terminal within the Port of Damietta 70 kilometres west of the Suez Canal.

Dipco, an international consortium led by KGL PI, a subsidiary of Kuwait-based KGL, was awarded a 40-year concession by the Damietta Port Authority to construct, develop and operate a container terminal expected to be completed in 2009.

KGL managing director Robert Soussa praised the banks: "This is one of the fastest and most efficient transactions we have ever done."

AUB senior deputy chief executive Michael Collis said: "The strategic implications of a port just 70 kilometres from the Suez Canal combined with its ability to handle and process ultra large container vessels will ensure the project is successful."

The new terminal within the Port of Damietta is expected to handle some of the largest containerships in the Mediterranean and will significantly lower operating costs and sailing time for transshipments.