The European Bank for Reconstruction and Development (EBRD) to approve a $125 million loan, in October, to support the development of the superstructure and purchase of equipment to develop a second container terminal in Damietta Port.

The loan is part of a financing package of $455 million expected to be co-financed by the Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions und Entwicklungsgesellschaft (DEG), the International Finance Corporation (IFC), and Proparco.

According to EBRD’s website, the loan will promote private sector participation in the infrastructure sector, which will position Damietta Port as a strategic transshipment hub in the East Mediterranean.

“The project will also support human capital development within Damietta by broadening access to market relevant skills and training in the sector, and helping reduce the skills gaps in the region by setting a skills development strategy responding to emerging and future needs of the ports and logistics sector,” the bank added in a statement on its website.

In 2022, the Egyptian Cabinet had announced that a consortium of European terminal logistics companies to invest $500 million in the establishment of a new container terminal at Damietta Port.

The consortium, comprised of Eurogate Terminals, Contship Italia, and Hapag-Lloyd, has reached an agreement with the Damietta Port Authority (DPA) to undertake the development and management of the terminal. Additionally, they have formed a joint venture with two local companies to collaboratively execute the project.