Sonker

Location:

Egypt

Project number:

47010

Business sector:

Natural resources

Notice type:

Private

Environmental category:

B

Approval date:

22 Jul 2015

Status:

Repaying

PSD disclosed:

10 Feb 2015

Translated version of this PSD: Arabic

Project description and objectives

USD 100 million EBRD financing, consisting of a USD 72 million senior loan and a USD 22 million mezzanine loan, to Sonker. Sonker is an Egyptian storage and bunkering company operating at the Sokhna Port on the Red Sea. The EBRD contribution will be part of a joint financing package with IFC and CIB for the purpose of constructing and operating Bulk Liquids Terminal facilities for the import and storage of gasoil, LPG, and LNG (“the Project”).
 
The Project is crucial to Egypt’s energy security, installing the necessary infrastructure at the Sokhna Port to help Egypt meet its growing requirement for gasoil, LPG, and natural gas imports.


Transition impact

The Project will promote private ownership in Egypt as Sonker is one of the few independent private players in the Egyptian energy storage and bunkering sector. It will also demonstrate the benefits of efficient operation of the hydrocarbons import handling sector in Egypt. The Project will also help to set standards of corporate governance and business conduct by requiring the company to adopt best industry standards for corporate governance and implement an Environmental and Social Action Plan (ESAP).


The client

Sonker Bunkering Company S.A.E. (“Sonker”) is a private storage and bunkering company incorporated in Egypt for the purpose of realising the Project. It is beneficially owned by the Amiral Holding Group (“Amiral”) and the Egyptian Ministry of Finance and the Egyptian Ministry of Petroleum.


EBRD finance

USD 72 million senior loan.

USD 22 million mezzanine loan.


Total project cost

USD 504 million.


Environmental and social categorisation, impact, and mitigation


Categorised B (2008). The Project will take place within a brownfield industrial area, and the impacts are likely to be site-specific and localised. The independent environmental and social due diligence (ESDD) included a review of national Environmental Impact Assessment (EIA) studies developed for the Project components, other environmental, health, safety and social (EHSS) information and reports, and a site visit to the Project area. The ESDD identified that environmental and social impacts should be mainly limited to the construction phase and will also be short-term and localised. Such impacts will be mitigated through the implementation of management plans, Good International Practice, and other measures stipulated in the EIA documents. Waste will be handled by authorised contractors, while wastewater will be treated by the existing wastewater treatment plant. Relevant management plans will be developed by the Company prior to construction. Key hazards of the operational phase are related to the presence of hazardous substances (gasoil, LPG), which can be effectively controlled through a modern design and technology of the proposed facilities.

Sonker is currently developing its EHSS management system; in the meantime, ongoing EHSS planning and activities are based on the key shareholder (Amiral Group) policies and standards, and there is a high level of EHSS awareness at company level.

250 workers are expected to be employed during construction and about 50 during operation. Construction workers will be accommodated in facilities to be built by the contractor in the vicinity of the port. Contractors accommodation standards should be aligned with the EBRD/IFC guidelines on workers accommodation. A formal HR Policy and a grievance mechanism compliant with PR 2 will also need to be developed and communicated to employees.

Some stakeholder engagement activities were conducted in 2008-2011. Stakeholder engagement activities will need to be re-launched on the basis of the regularly updated SEP. A community grievance mechanism should be developed and communicated to stakeholders and a Community Liaison officer hired and trained accordingly.

The ESAP has now been agreed with the Company; ESAP actions include developing and finalising EHSS policies and management systems commensurate with the impacts of the Project and compliant with the EBRD PR1; and allocating required staff; providing required HSES training to Project personnel;  developing Project and contractors' construction management plans based on recommendations of the EIA reports and ESAP actions; conducting cumulative risk assessment given the proximity of other hazardous operations in the vicinity of the Project; establishing contractors auditing and monitoring procedures; developing Human Resources Policy including provisions on terms of employment and employees grievance mechanism; developing and implementing construction camp accommodation standards compliant with the IFC and EBRD guidance;  developing a Land Acquisition Plan for the pipeline outside the site boundary; developing chance-find procedures; regularly updating the SEP and continued stakeholder engagement and consultation activities based on the updated SEP and hiring Corporate Social Responsibility/Community Liaison officer. The Project will be monitored through review of annual environmental and social reports and monitoring visits. Any additional activities or revised use of proceeds will be subject to satisfactory environmental and social due diligence and expanded ESAP.

Technical cooperation

None.

Company contact

Mr Paul van der Wilden
Chief Financial Officer
Amiral Group
29 Farid Street, Heliopolis
Cairo
Egypt

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

Share this page: