MAF Almaza

Location:

Egypt

Project number:

50550

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

03 Apr 2019

Status:

Disbursing

PSD disclosed:

02 Jul 2019

Translated version of this PSD: Arabic

Project Description

Provision of up to USD 200 million senior A/B loan (the "Loan") to City Centre Almaza SAE (the "Company") a fully-owned subsidiary of Majid Al Futtaim Holding LLC. The Loan will be used to finance the development and operation of a regional retail and entertainment centre (the "Project") in Egypt.

Project Objectives

Contribution to the expansion of the private sector and support of sustainable developments in the evolving real estate sector in Egypt. The Loan will be used to finance the construction, equipment and placing into operation of City Centre Almaza, a regional retail and entertainment centre with a gross leasable area of around 103,000 square meters located in East Cairo.

Transition Impact

The Project will contribute to the Green quality as the development under construction will be certified under the LEED green building certification scheme. The Project will also contribute to the Inclusive quality through improved access to training and work based learning opportunities.

Client Information

CITY CENTRE ALMAZA SAE

City Centre Almaza SAE is incorporated in Egypt and active in the development and operation of a regional retail and entertainment centre located in Cairo. The Company is a fully-owned subsidiary of Majid Al Futtaim Holding LLC (the "Sponsor"), a leading shopping mall, communities, retail and leisure developer and operator in the Middle East, Africa and Asia.

EBRD Finance Summary

USD 150,000,000.00

Total Project Cost

USD 437,000,000.00

Environmental and Social Summary

Categorised B (2014). The Project's environmental and social impacts are readily identified and addressed by standard mitigation measures.  Environmental and Social Due Diligence (ESDD) has been carried out by ESD and was based on review of the completed ESDD Questionnaire, policy documentation, the 2017 Corporate Sustainability Report, Environmental Impact Assessment (EIA) document (2016) as well as a site visit and discussions with the Company management (Feb 2019). The ESDD showed that the Company is committed to environmental and social sustainability being signatory to UN Global Compact. Further, the Company has demonstrated adequate capacities to implement the project in compliance with EBRD Performance Requirements (PRs).

The Company's Sustainability Policy covers numerous topics including healthy workplaces, sustainable buildings, employee conditions, energy management and contractor sustainability policy requirements. The Company is accredited for ISO 45001 for Occupational Health and Safety (OHS) management as well as is in the process of acquiring ISO14001 for an environmental management system.

The review of the Project has confirmed that construction work has been carried out in accordance with national law as well as good international practice. The Project site is not associated with biodiversity and resettlement issues. There is no on-site housing for the construction workers. The Project has been carried out with the required environmental and construction permits. Wastewater from the retail centre will be discharged to the municipal sewerage collection system. The building's life and fire safety design is in compliance with national law as well as in line with NFPA. Automated fire detection and sprinkler systems are in place all across the facility. The Company has HR policy including an employee grievance mechanism in line with PR2. Subcontractors' OHS record is examined for the bidding & selection purpose as well as their OHS performance at the Project is monitored and recorded. The Company regularly carries out OHS audits. There is an on-site clinic with an ambulance car. The Project has been designed and implemented to acquire LEED Gold certification. Solar panels are installed.

An Environmental & Social Action Plan (ESAP) has been developed to ensure the Project is structured to achieve PR compliance and has been agreed by the client. The ESAP addresses general environmental management, contractor labour and OHS, life and fire safety issues and employee and public grievance mechanisms. The Bank will monitor the project's E&S performance by reviewing an annual report as well as site visit if deemed necessary.

Technical Cooperation

Inclusion TC will be provided under the Economic Inclusion Technical Assistance Framework (TCRS 1256). TC value is estimated at up to EUR 100,000 to focus on: (i) establishment of a retail skills shop; (ii) establishment of partnerships with local partner universities/colleges; (iii) development of teaching and learning materials; and (iv) implementation support.

Company Contact Information

Majid Al Futtaim Corporate Communications
media@maf.ae
+971 501074404
 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

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