DFF - Hassan Allam Holding II

Location:

Egypt

Project number:

53199

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

08 Mar 2022

Status:

Disbursing

PSD disclosed:

29 Jun 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

A two-tranche local currency senior loan (the "Loan") of EGP 180m/EUR 9.1m to Hassan Allam Holding ("the Borrower"). 

Project Objectives

The first tranche of EGP 55m/EUR 2.8m will finance the Borrower's capital participation in a growing FMCG e-commerce and distribution platform, whereas the second tranche of EGP 125m/EUR 6.3m will finance the Borrower's operating budget needs.

Transition Impact

ETI score: 74

Primary Quality: Well Governed: 

The project will support the client to implement improvements in Corporate Climate Governance (CCG) practices, including capacity building, identification of climate-action priorities and introduction of climate-related disclosures.

Secondary Quality: Inclusive: The Project will design and deliver new training programmes and opportunities to bridge skills mismatch within the Client's operations.

Client Information

HASSAN ALLAM HOLDING SAE

Hassan Allam Holding (HAH) is a leading Egypt-based engineering and construction group whose primary operations include infrastructure, industrial, and commercial projects in Egypt and the MENA region. Origins since 1936, makes HAH the oldest construction franchise in the MENA region, and boasts a solid reputation, superior technical capabilities, and a diversified portfolio. HAH delivered, as a contractor, more than 70 projects over the past five years and currently has a backlog exceeding USD 7 billion. HAH stands out with an integrated business model offering world class engineering solutions, besides general and specialized construction, along with a range of complementary business lines, subsidiaries and affiliates that include steel fabrication, a wood workshop, aggregate quarries, ready mix concrete, concrete products, building technologies & office solutions, a concrete pipes factory and construction chemicals. HAH also invests as a developer, an owner, and an operator in infrastructure and logistics in partnership with global sector leaders. Hassan Allam Holding principally operates in Egypt with more than 30 subsidiaries and associates stretching corporate and commercial activity to Germany, the Netherlands, Saudi Arabia, Oman, Jordan, Congo-Kinshasa and Algeria. The Company is one of the largest employers in Egypt with upwards of 40,000 between full time employees and daily workers.

EBRD Finance Summary

EGP 180,000,000.00

Total Project Cost

EGP 180,000,000.00

Additionality

Financial Additionality - Financing Structure: The Bank is offering funding that is not widely available in the local market.

Non-Financial Additionality - Standard-setting: helping projects and clients achieve higher standards: The Borrower will partner with the Bank to develop their sustainability management practices, through the development of a Corporate Climate Governance Action Plan, enhancing their climate governance and accountability as well as develop their climate reporting. Furthermore, the Bank will also support in standard setting in relation to gender and youth inclusion through delivering technical support to support the Borrower in meeting its human capital needs.

Environmental and Social Summary

Categorised B (2019 ESP). The Environmental and Social Due Diligence ("ESDD") for the Project was carried out using internal resources and included a review of previous environmental and social ("E&S") reporting from the client, Hassam Allam Holdings ("HAH"), two site visits to HAH projects under the control of their construction division and a review of publically available information related to the investment Target (the "Target"). ESDD confirmed HAH performance to date has been satisfactory and the implementation of the existing Environmental and Social Action Plan ("ESAP") from the previous project has largely been completed. Recent site visits also confirmed high standards related to E&S management especially related to occupational health and safety on construction projects under the control of the HAH Construction Division. The Bank will monitor activities of HAH through the Annual Environmental and Social monitoring reports submitted by HAH including E&S information made available to HAH.

Technical Cooperation and Grant Financing

Gender and Inclusion TC Programme of up to EUR 150,000 funded by SSF SEMED under TCRS 12804: TC will support a new training program, through the development of training materials and delivery of training of trainers, for the Client's new subsidiary, Legacy Development & Management SAE. The program will address current skill gaps in the Egyptian labor market and will enhance employability of young women and men. 

Corporate Climate Governance TC programme of up to EUR 75,000 funded by (CCG) Client Support Facility under TCRS 15409: The TC will support improvements in the Group's climate corporate governance through enhancing governance and accountability; the development of a green strategy; and preparation of climate reporting.

Company Contact Information

Mohy-Eldin M.Abdin
Mohy.Abdin@Hassanallam.com
+ 202 22659000
https://www.hassanallam.com/
Yehia Zakaria St., Industrial Zone - lot 5, Sheraton Heliopolis Housing, Cairo, Egypt

PSD last updated

29 Jun 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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