DCT's Terminal 3 Expansion Project (Project Leopard)

Location:

Poland

Project number:

53090

Business sector:

Transport

Notice type:

Private

Environmental category:

A

Approval date:

21 Sep 2022

Status:

Signed

PSD disclosed:

15 Jul 2022

Project Description

A senior loan of up to EUR 150 million in favour of DCT Gdansk Sp. z o.o. ("DCT" or the "Company") and its 100% holding Baltic Hub Sp. z o.o. ("HoldCo"), both incorporated in Poland. EBRD loan will be part of a wider debt package of up to EUR 863.5 million provided jointly with commercial banks to i) refinance the Company's existing debt, ii) capex for construction of Terminal 3, and iii) provide working capital for the Company.  EBRD's loan will be focused on capex facility and will contribute to funding construction of Terminal 3, upgrade and renewal of the equipment on Terminals 1 and 2 and additional yard development within the Port of Gdansk.

Project Objectives

The Project is anticipated to add 1.47 million TEUs of capacity allowing the Company to meet growing demand. The project will also incorporate latest energy efficient technical solutions.

Transition Impact

ETI score: 63

Transition impact stems from the following two transition qualities:

Integrated - The Project will deliver material quality improvements of the current infrastructure between or within regions that are currently inadequately integrated and very advanced technology in line with best available technology standards will be applied.

Green - The construction of the new terminal will enable a modal shift by expanding the port capacity and supporting maritime and rail transport, and will involve climate change mitigation measures such as energy efficiency components. The Project is classified as 100% GET eligible.

Client Information

DCT GDANSK SA

BALTIC HUB Sp. z o.o.

Baltic Hub Sp. z o.o. is a limited liability company incorporated in Poland which holds 100 per cent share of DCT Gdansk Sp. z o.o.

DCT Gdansk Sp. z o.o.

DCT is a limited liability company incorporated in Poland to operate and manage deep-sea container terminals.

EBRD Finance Summary

EUR 150,000,000.00

Up to EUR  150,000,000

Senior secured loan in favour of Baltic Hub Sp. z o.o. to finance CAPEX for the construction of Terminal 3, upgrade and renewal of the equipment on Terminals 1 and 2, and additional yard development.

Total Project Cost

EUR 863,500,000.00

EUR  863,500,000

Additionality

The Bank's additionality stems from volatile market conditions, uncertainty in the market caused by the war in Ukraine, and the Company's acceptance of the Bank's higher environmental and social standards. 

Environmental and Social Summary

Project has been categorised A in line with 2019 Environmental and Social Policy as the. project requires significant dredging and backfilling works, is located within "Zatoka Pucka" Natura 2000 Special Bird Protection Area and will cater for vessels of over 1 350 tonnes and so requires an Environmental Impacts Assessment ("EIA") under the EU EIA Directive. The national EIA was developed in 2018 and following consultation aligned with national requirements the project has been approved by competent authorities in Poland in 2019 with specific environmental conditions stipulated in the Environmental Decision. The project has also been included in the land and sea development plans and respective strategic environmental assessments ("SEAs"). A gap analysis of the national EIA and project preparation activities to date against EBRD Performance Requirements ("PRs") was undertaken by an independent consultant in 2021. Following this, a set of additional assessments covering potential social impacts, dredging and sea water quality and biodiversity impacts (including a Critical Habitat Assessment) were undertaken in 2022. The Supplementary Information Package comprising the additional assessment reports plus a Stakeholder Engagement Plan ("SEP") , Non Technical Summary ("NTS") and Environmental and Social Action Plan ("ESAP") will be disclosed for 60 days in line with the Access to Information Policy. In addition, targeted stakeholder engagement activities will be undertaken during the disclosure period.

 

DCT is a long-standing client of the Bank and therefore known to have a high level of environmental and health and safety ("EHS") management expertise and commitment. Environmental and Social due diligence ("ESDD") Audit undertaken for the Bank by an independent consultant confirmed that the existing container terminals and associated infrastructure are managed under an integrated Integrated Management System ("IMS"), comply with EU and national legislation and apply good international practices for Ports and Harbour operations. DCT has implemented the previously agreed ESAP (2014) pertaining to development of T2 in a timely manner and reporting on the environmental and social performance to the EBRD has been satisfactory. In 2015 the Bank received unofficial complaints in regard to labour related issues. However, the situation was resolved in 2016 through signing of the Collective Bargaining Agreement ("CBA") between the worker unions and DCT. The CBA is now reviewed periodically and the current agreement signed in 2020 is valid until the end of 2026. An independent Labour Assessment on DCT's human resources ("HR") management system was undertaken as part of the project appraisal for the Bank in 2022 and confirmed that DCT's policies and procedures are in compliance with the national labour laws and largely compliant with EBRD PR2. A worker grievance mechanism is established and supported by the elected worker representatives. The Code of Ethics includes non-discrimination and equal opportunities principles.

DCT, partially owned by PSA International from Singapore, is driven by strong corporate standards in regard to minimisation of green-house gases ("GHG") emissions for which the Company has developed a structured plan to reach net-zero by 2050 with clear milestones along the way.

The Project will require dredging of 4 million m3 to achieve depth of -17.8m and land reclamation of approximately 37 ha. Assessment of dredging activities has not been covered by the national EIA, although the Environmental Decision posed time limitations on the dredging activities (from April until August) to protect birds feeding and nesting near the planned works. The supplementary assessment of impacts on the marine environment related to capital dredging, nearby Stogi beach morphology and water quality undertaken in 2022 has concluded that dredging material is suitable for reuse or disposal offshore, however the dredging activities may result in increased turbidity and contamination of nearby blue flag beach with silt material. A set of mitigation measures, including Environmental Decision posed time limitations on the dredging activities (from April until August), use of silt curtains, adaptive management and real time monitoring of water quality has been agreed with the Company and will be further developed in the detailed Dredging Management Plan.

The project is located within "Zatoka Pucka" Natura 2000 Special Bird Protection Area and in the Critical Habitat for 2 bird species and 3 marine mammals' species.  A supplementary biodiversity impact assessment has been based on the ongoing birds monitoring in the vicinity of the existing terminal and 2018 and 2019 surveys of marine mammals in the Gdansk Bay undertaken by the University of Warsaw Marine Station in Hel. While habitat loss as a result of backfilling, will be negligible in regard to the Ecological Appropriate Area of Analysis for the considered species, a set of mitigation measures has been proposed against other potential negative impacts at construction stage. Dredging related time restrictions, mitigation measures, adaptive management and ongoing ornithological supervision are aimed to protect of birds, while implementation of the Marine Mammal Mitigation Protocol (based on the guidance from Joint Nature Conservation Committee) during dredging and piling works will mitigate underwater noise and vibration impacts on marine mammals.

Project-specific socio-economic assessment has been undertaken to supplement the national EIA and established the baseline conditions of the communities located in the project area such as Stogi, Przerobka and Krakowiec-Gorki Zachodnie. The socio-economic impacts have been assessed and mitigation measures incorporated into the ESAP. Potential impacts on communities vary from construction stage traffic impacts to possible changes to amenity value of the adjacent Stogi beach due to landscape impacts and indirect impacts on local businesses. The Project will also bring economic benefits to regional and national economies. It is required that DCT monitor such changes, mitigate construction impacts, continue stakeholder engagement, and target their existing community support program on the affected communities.  

 

The comprehensive ESAP agreed with the Company to structure the Project to be in line with EBRD PRs covers implementation of detailed Construction Environmental and Social Management Plan ("ESMP") by the EPC Contractor, preparation and implementation of detailed Dredging Management Plan by the dredging contractor, submission of additional dredging material sampling results and permits for disposal off shore in line with Helcom requirements, sourcing of fill material only from existing and permitted borrow pits and quarries, ornithological supervision and implementation of the Marine Mammal Mitigation Protocol. The social impacts and areas that require improved compliance against EBRD PRs include contractor and supplier supervision and monitoring, construction traffic risk assessment and management, social monitoring of impacts on the Stogi beach, ongoing stakeholder engagement and information sharing about the project phases as well as implementation of the community grievance mechanism.

The Project construction stage and first year of operation will be monitored by the LTA with 6 monthly reports to the Bank. The Bank will monitor the project based on the reporting from the LTA, the Client and site visits as required.

Technical Cooperation and Grant Financing

n/a

Company Contact Information

T3 Development Unit
T3-development@dctgdansk.com
+48 58 737 63 17
+48 58 737 63 50
www.dctgdansk.pl
DCT Gdansk SA 7 Kontenerowa Street 80-601 Gdansk Poland

PSD last updated

15 Jul 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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