Confirm cookie choices
Cookies are pieces of code used to track website usage and give audiences the best possible experience.
Use the buttons to confirm whether you agree with default cookie settings when using

DFF- Project Axis



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

28 Jul 2020



PSD disclosed:

10 Sep 2020

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

Provison of a USD 25 million two year working capital loan (the "Loan") to support Orascom Construction S.A.E (the "borrower" or the "Company") working capital needs in Egypt amidst the COVID-19 pandemic crisis.

This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information.  Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Project Objectives

Support the Company's working capital requirements. The Company is expecting higher working capital needs as result of the COVID-19 pandemic. During the first quarter of 2020 the Company already experienced the effects of partial lock down in addition to social distancing and health and safety requirements at the project sites. A two year USD working capital facility will improve the Borrower's financial resilience to withstand the potential negative implications of the COVID-19 pandemic.


Transition Impact

Primary TI Quality: Resilient - The project will improve the Borrower's financial resilience to withstand the potential negative implications of the COVID-19 pandemic. The resilience of the Borrower will be monitored via the Company's working capital cycle and the Borrower's ability to sustain its operations in spite of any potential negative implications of the COVID-19 pandemic.

Secondary TI Quality: Inclusive - The project will introduce a new, replicable and nationally accredited training programme improving skills for young people. Inclusive angle will be monitored through successful expansion of training initiatives and via the number of young women and men expected to be trained.

Client Information


  • Orascom Construction Company S.A.E, (the "Borrower") is an Egyptian joint stock company. It is one of the leading Egyptian companies realising infrastructure, industrial and commercial projects as engineering and contracting company. The Borrower is fully owned by Orascom Construction PLC ("the Guarantor"), a global engineering and construction contractor focused on infrastructure, industrial and commercial projects in the Middle East, North Africa, Europe and the United States. Orascom Construction PLC is listed on the Egyptian stock exchange and NASDAQ Dubai with a market capitalisation of USD 550m with a diversified shareholder base between Egyptian and international investors.

EBRD Finance Summary

USD 25,000,000.00

USD 25,000,000.00

Total Project Cost

USD 25,000,000.00

USD 25,000,000.00


Crisis response: EBRD financing will support the stability of the Borrower'sworking capital amidst the uncertainty of interrupted operations due to lock-downs/social distancing impact and the resulting slower revenue recognition and collection.

Financing Structure: Due to impact of Covid-19 in the Egyptian economy (tourism and exports are heavily affected), the availability of USD in the market is scarce. EBRD plugs a gap in the market that is not supported by the local commercial banks.

Environmental and Social Summary

Categorised B (2019 ESP). The Company is part of a group of companies with whom EBRD has previous experience. The loan is to ensure sufficient working capital and liquidity at the Company level and it is not associated with capex or a specific project. Environmental and social (E&S) risks associated with the loan relate to ongoing Company activities. E&S due diligence (ESDD) was undertaken in-house by ESD in line with the ESD's ESDD approach to COVID-19 and consisted of a review of Corporate and COVID-19 E&S questionnaires and supporting documentation as well as follow up discussions with the Company.

ESDD confirmed that the Company has in place an internationally recognised integrated management system certified to ISO standards: Environmental Management (ISO14001), Quality (ISO9001) and Occupational Health and Safety Management (OHSAS 18001). These systems draw on group level sustainability commitments and policies. The management system applies to all Company projects and is underpinned by a variety of policies, plans and procedures. The management system is extended to contractors and sub-contractors and procedures are tailored to specific projects and sites. Company projects and activities are routinely audited and internally reported. The management system is implemented by a team of Company specialists. A series of procedures have been put in place to manage risks associated with COVID-19. 

Human Resources policies and procedures are in place and are generally in line with PR2 requirements. A worker grievance mechanism is in place and the Company will need to maintain the commitment on the right of the employees to freedom of association. Company will need to expand its HR procedures measures to further address potential gender based violence risk and reporting channels. Further, if collective dismissals are required, these will need to be conducted in line with PR2 requirements including preparation of a collective dismissals plan for EBRD approval.

Health and safety is managed in line with the Company management system. Health and safety is a key focus area and subject to various programmes and capacity building initiatives. All incidents and near misses are reported and investigated. Each site has a specific management plan focussing on all E&S matters related to construction.

As primarily a contractor, the Company is not involved in project impact assessments and therefore is not responsible for acquiring land, considering impacts to biodiversity and engagement with communities. Its role is implementation of the required mitigation and management measures. If such activities are required of the Company, they are considered in terms of relevant E&S and project lender standards.

If community complaints are raised on project sites to the Company these are directed to the Project developer. The Company is required to maintain an external grievance mechanism for external stakeholders including the public.

ESDD has confirmed that the company has the capacity to manage the E&S of its operations in line with the Bank's requirements. An E&S action plan has been agreed with the Company before signing. The Company will be required to report to the EBRD on an annual basis on its E&S performance and ESAP implementation. 

Technical Cooperation and Grant Financing


Company Contact Information

Nader Ragheb
2005A Corniche El Nil, Nile City South Tower, 25th Floor, Cairo - Egypt 11221

PSD last updated

22 Oct 2020

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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


GDPR Cookie Status