Translated version of this PSD: Arabic
The EBRD is considering a senior loan of up to USD 60 million to support the development and operation of a master plan development in the centre of the 6th of October City, namely its first phase which consists of a retail and entertainment centre and represents a footfall generator of the whole master development. Future phases include affordable residential buildings and a business hotel.
The proceeds of the Loan will be used to support the completion of the retail and entertainment centre (the “Project”), which is forming the heart of the future development and represents an integral part of the wider master plan of the 6th of October City; currently being developed by Egyptian Centres for Real Estate Development (the “Company”).
The Project is partially operational, since March 2011, and currently has a total gross leasable area (“GLA”) of about 110,000 sqm. Once the phase under development is completed, the Project will consist of approximately 174,000 sqm of retail and entertainment area, comprised of over 520 stores, and parking for over 7,500 cars.
The goals of the project are:
i) To support the urban development of the 6th of October City, thus stimulating further investment in Egypt as an important market in the region.
ii) To provide international quality retail and entertainment space, attracting residents and workers from the industrial zones in 6th of October City and surrounding areas.
iii) To help provide access to training and offer career opportunities to unemployed youth and women in the area.
Finally, through the Project, the Bank is encouraging Foreign Direct Investment in Egypt.
The Project’s transition impact will most likely stem from the following:
- Systemic inclusion impact through the creation of vocational training standards in the retail and service sectors in Egypt coupled with career placement opportunities.
- Skills transfer to the local workforce.
- Setting standards, mainly through demonstration of energy efficient building techniques and improvement of environmental, health and safety standards in the sector.
Egyptian Centers for Real Estate Development, a private shareholding company, incorporated in Egypt. The client is directly owned by the AlHokair family.
A senior loan of up to USD 60 million.
USD 207 million.
The Project was categorised “B” by EBRD, which means that an environmental and social analysis was required by the Bank, in accordance with the 2008 Environmental and Social Policy and Performance Requirements (http://www.ebrd.com/about/policies/enviro/policy/2008policy.pdf). The Project has some environmental and social impacts which can be readily addressed through mitigation measures and an action plan.
The Company carried out a local Environmental Impact Assessment (EIA) and public consultation for the existing operations and the phase under development in accordance with national EIA law and International Finance Corporation (IFC) Performance Standards in 2013. The comprehensive Environmental and Social Impact Assessment (ESIA) report was disclosed for the public in the country. The Company also carried out the third party life and fire safety audit for the existing operations. EBRD has commissioned a third-party technical due diligence for the Project. EBRD environmental staff has reviewed the ESIA report, the life and fire safety audit report and technical due diligence report as well as visited the Project site with IFC (February 2014). Furthermore, EBRD will carry out an energy and resource efficiency assessment for the Project.
Environmental and Social Issues and Environmental and Social Action Plan (ESAP)
Environmental and social due diligence confirmed that the Project is not associated with significant environmental issues such as past contamination. However, it identified health and safety issues:
(i) need to improve construction work at height,
(ii) assurance for the construction worker temporary accommodation to be built in accordance with IFC/EBRD Construction Temporary Accommodation Guidelines,
(iii) a life and fire safety master plan to be developed as a follow up of the life and fire safe audit,
(iv) support for safe commuting for the retail and entertainment centre employees with specific gender consideration.
The ESIA is currently being developed to fully address (i), (ii), (iii) and (iv).
Environmental or Social Opportunities
The Project has a job creation impact. The existing operations created 3,480 management and staff jobs in the retail shops and other tenants, 88 jobs in the client side and 305 jobs in the sub-contractors. The upcoming Project is expected to generate additional 1,700 jobs once it becomes operational. During the construction phase, approximately 1,000 construction workers will be hired. Furthermore, improvements of Occupational Health Safety (OHS) in the construction work as well as safe commuting for the employees are expected to bring benefits for the concerned workers and employees as well as business efficiency.
Environmental and Social Requirements
The client is required to ensure that the Project complies with EBRD’s Performance Requirements (PRs) as well as the agreed ESAP.
The Bank will monitor the Project’s environmental and social performance by reviewing an annual environmental and social report as well as site visits where necessary and adequate.
A TC has been commissioned to create a baseline assessment of existing vocational training standards in retail related disciplines in Egypt, and to develop a methodology to engage retailers in the development of relevant standards that reflect private sector skill requirements.
The Bank will provide technical assistance to the Client who is interested to investigate sustainable resource opportunities going beyond the current design and sustainability certification under any of the world-wide international certification scheme. The Consultant will advise about any cost-effective actions which might help to improve the Project sustainability and conduct training on certification requirements and procedures.
Tel: +966 11 435 0000 Ext 264
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Public Information Policy (PIP)
The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP