Abou Ghaly Motors - Electric vehicles

Location:

Egypt

Project number:

53556

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Approval date:

19 Jul 2022

Status:

Approved

PSD disclosed:

17 Jun 2022

Project Description

Provision of a senior loan of up to EGP 175 million (ca. EUR 9 million) to Abou Ghaly Motors ("AGM" or the "Company") to support acquisition of electric vehicles to expand mobility services offered by the Company and meet the growing demand in safe and reliable transportation in Egypt.

Project Objectives

The objective of the Project is to support AGM's operational expansion along a low carbon transition pathway through electrification of the Company's fleet, which is expected to have a positive demonstration effect for electric mobility in both the public and private sectors of Egypt.

Transition Impact

ETI score: 74

The primary transaction impact of the Project is Green as it supports the Company's expansion in transport provision along a low carbon transition pathway following an acquisition and operation of electric vehicles, which are expected to contribute to lower GHG emissions, better air quality, and reduced dependence on petroleum based transportation as compared to the baseline. The secondary transition impact of the Project is Inclusive as it supports the delivery of safe and accessible transport services for women and people with disabilities by improving safety and accessibility features of the vehicles operated by the Company as well as provide trainings to individuals to enhance their skills in light of the growing electrical vehicle market in Egypt.

Client Information

ABOU GHALY MOTORS

AGM is one of the leading providers of integrated mobility solutions as well as car distributors in Egypt. The Company is one of the first Egyptian transport providers to offer public transport services through electric vehicles.

EBRD Finance Summary

EGP 175,000,000.00

Senior loan of up to EGP 175 million, equivalent to around EUR 9 million.

Total Project Cost

EGP 325,479,058.00

Additionality

EBRD's involvement is considered additional in terms of (i) financing structure as the EBRD loan is intended to be complemented by an investment grant to enable realisation of a high capital intensive transaction that is expected to have considerable environmental benefits and strong demonstration effect; (ii) risk mitigation as the Project supports the Company's expansion along a low carbon transition pathway, as well as (iii) standard-setting as the Project supports delivery of safe and accessible transport services to women and people with disabilities and training activities relevant to the growing electric vehicle market in Egypt.

Environmental and Social Summary

The proposed Project has been categorised B in accordance with the 2019 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The Environmental and Social Due Diligence (ESDD) of the Project, which is ongoing, includes an independent third party environmental and social audit to assess the Client's management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Company's ability to carry out the Project in compliance with the Bank's Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the Project. This PSD will be updated once the results of the ESDD are known.

Technical Cooperation and Grant Financing

EBRD loan is expected to be complemented by an investment grant from an international donor.

Company Contact Information

Viviane Nosseir
viviane.nosseir@aboughalymotors.com
+20222777600
www.aboughalymotors.com
AGM HQ, KM28 Ismailia Desert Road, Cairo, Egypt

PSD last updated

17 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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