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EBRD oks EUR 25M for Egypt’s 1st dry port

EBRD oks EUR 25M for Egypt’s 1st dry port

ArabFinance: The European Bank for Reconstruction and Development (EBRD) has approved an EUR 25 million  loan in favour of Egypt’s October Dry Port Company (ODP), according to an emailed press release.

ODP is a joint-stock company established to construct Egypt’s first inland dry port located in 6th of October City.

The loan is part of a total investment package of worth $60 million to finance the design, development, construction, and operation, as well as maintenance of the port.

The project will be Egypt’s trigger investment under the EBRD's Green Cities Framework.

The port will function as an extended gateway for the deep-sea ports located in the northern and eastern regions of Egypt and designed to be the final destination of cargo.

It is also expected to provide efficient customs inspections and clearance procedures, reduce congestion in the seaports, create economies of scale by using intermodal rail services to/from the seaports and, and improve the overall reliability and cost-efficiency of the logistics processes of the dry port's future clients.

““It is also expected to transfer part of the container traffic from road to railway, thus realising many social, environmental, and economic benefits such as reduced road congestion, accidents, and environmental emissions. In particular, the project will lead to significant GHG savings and air pollutants reductions and is therefore consistent with the Green Economy Transition (GET) approach and is 100 percent GET,” EBRD highlighted.

However, the inland dry port projects boost Egypt’s strategy of green transformation, adding that the loan that the EBRD has approved for the 6th of October City’s dry port paves the way for securing more finances for such kind of projects and other transport projects through establishing further international partners.

In June, the EBRD projected Egypt’s real gross domestic product (GDP) to grow by 4.2% in 2021, 0.8% lower than the bank’s forecasts in 2020. However, it expected the rate to increase to 5.2% in 2022, a level close to the rates accomplished prior to the pandemic.

 

 

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