Translated version of this PSD: Arabic
Project description and objectives
USD 100 million EBRD financing, consisting of a USD 72 million senior loan and a USD 22 million mezzanine loan, to Sonker. Sonker is an Egyptian storage and bunkering company operating at the Sokhna Port on the Red Sea. The EBRD contribution will be part of a joint financing package with IFC and CIB for the purpose of constructing and operating Bulk Liquids Terminal facilities for the import and storage of gasoil, LPG, and LNG (“the Project”).
The Project is crucial to Egypt’s energy security, installing the necessary infrastructure at the Sokhna Port to help Egypt meet its growing requirement for gasoil, LPG, and natural gas imports.
The Project will promote private ownership in Egypt as Sonker is one of the few independent private players in the Egyptian energy storage and bunkering sector. It will also demonstrate the benefits of efficient operation of the hydrocarbons import handling sector in Egypt. The Project will also help to set standards of corporate governance and business conduct by requiring the company to adopt best industry standards for corporate governance and implement an Environmental and Social Action Plan (ESAP).
Sonker Bunkering Company S.A.E. (“Sonker”) is a private storage and bunkering company incorporated in Egypt for the purpose of realising the Project. It is beneficially owned by the Amiral Holding Group (“Amiral”) and the Egyptian Ministry of Finance and the Egyptian Ministry of Petroleum.
USD 72 million senior loan.USD 22 million mezzanine loan.
Total project cost
USD 504 million.
Environmental and social categorisation, impact, and mitigation
Categorised B (2008). The Project will take place within a brownfield industrial area, and the impacts are likely to be site-specific and localised. The independent environmental and social due diligence (ESDD) included a review of national Environmental Impact Assessment (EIA) studies developed for the Project components, other environmental, health, safety and social (EHSS) information and reports, and a site visit to the Project area. The ESDD identified that environmental and social impacts should be mainly limited to the construction phase and will also be short-term and localised. Such impacts will be mitigated through the implementation of management plans, Good International Practice, and other measures stipulated in the EIA documents. Waste will be handled by authorised contractors, while wastewater will be treated by the existing wastewater treatment plant. Relevant management plans will be developed by the Company prior to construction. Key hazards of the operational phase are related to the presence of hazardous substances (gasoil, LPG), which can be effectively controlled through a modern design and technology of the proposed facilities.
Sonker is currently developing its EHSS management system; in the meantime, ongoing EHSS planning and activities are based on the key shareholder (Amiral Group) policies and standards, and there is a high level of EHSS awareness at company level.
250 workers are expected to be employed during construction and about 50 during operation. Construction workers will be accommodated in facilities to be built by the contractor in the vicinity of the port. Contractors accommodation standards should be aligned with the EBRD/IFC guidelines on workers accommodation. A formal HR Policy and a grievance mechanism compliant with PR 2 will also need to be developed and communicated to employees.
Some stakeholder engagement activities were conducted in 2008-2011. Stakeholder engagement activities will need to be re-launched on the basis of the regularly updated SEP. A community grievance mechanism should be developed and communicated to stakeholders and a Community Liaison officer hired and trained accordingly.
The ESAP has now been agreed with the Company; ESAP actions include developing and finalising EHSS policies and management systems commensurate with the impacts of the Project and compliant with the EBRD PR1; and allocating required staff; providing required HSES training to Project personnel; developing Project and contractors' construction management plans based on recommendations of the EIA reports and ESAP actions; conducting cumulative risk assessment given the proximity of other hazardous operations in the vicinity of the Project; establishing contractors auditing and monitoring procedures; developing Human Resources Policy including provisions on terms of employment and employees grievance mechanism; developing and implementing construction camp accommodation standards compliant with the IFC and EBRD guidance; developing a Land Acquisition Plan for the pipeline outside the site boundary; developing chance-find procedures; regularly updating the SEP and continued stakeholder engagement and consultation activities based on the updated SEP and hiring Corporate Social Responsibility/Community Liaison officer. The Project will be monitored through review of annual environmental and social reports and monitoring visits. Any additional activities or revised use of proceeds will be subject to satisfactory environmental and social due diligence and expanded ESAP.
29 Farid Street, Heliopolis
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