As part of its €650 million investment plan, Tanger Med Port Authority (TMPA) is moving forward with completing the financing of the expansion of the capacity of its TIR passenger and truck terminal. On a budget estimated at €450 million, the project will be financed by loans mobilized by JP Morgan Chase Bank NA for €255 million and guaranteed by MIGA
Out of an envelope estimated at €450 million, the International Finance Corporation (IFC) planned to provide a loan of €150 million to TMPA, according to a communication released in December 2023. This loan was to be accompanied by co-financing of $50 million. ($M), converted to euros, mobilized by IFC from institutional investors through its Joint Loan Portfolio Program (MCPP).
A 15-year guarantee requested from MIGA
For its part, the Multilateral Investment Guarantee Agency of the World Bank (MIGA) was requested by the London branch of JP Morgan Chase Bank to cover its loans to the tune of €255 million out of an estimated raising of €350 million. debt financing intended to meet the investment needs of the project.
The financial package includes, according to this plan, a category A loan from the IFC of up to €100 million and commercial loans of up to €255 million mobilized by JP Morgan Chase benefiting from non-honor coverage of public companies ( NHSOE) of MIGA.
The MIGA guarantee is expected to have a term of up to 15 years against NHSOE risk, covering up to 95% of TMPA’s payment obligations under the loans.
The project is expected to improve access by increasing Tanger Med’s container handling capacity through the expansion of the truck terminal to accommodate up to 1 million heavy goods vehicles. Around 57% of the capacity of Tanger Med’s Passenger and Ro-Ro terminal is already used. Currently, Tanger Med offers processing capacity for 9 million containers, 7 million passengers, 700,000 trucks and 1 million vehicles.
Completion of work at the end of 2026
The planned expansion will see the development of 12 berths and 86 ha of land including sea walls and a polder reclaimed from the sea, marking a significant step in strengthening the port infrastructure.
The project is in the developer selection phase via an EPC contract (design, engineering, materials procurement and construction). The work is expected to last three years to be completed at the end of 2026.
The infrastructure expansion will result in road terminal capacity growth of 13% by 2029 and 43% by 2032. The project has significant potential effects on market development by enabling connectivity improvements international. It should increase the port’s service offering, in particular by improving the efficiency of sharing trucks, vehicles and passengers.
The leading container port in Africa and the Mediterranean benefiting from a strategic location with direct maritime connections with 180 ports and 70 countries around the world, Tanger Med has, in recent years, consolidated its position as a regional leader with a throughput worldwide of more than 100 million tonnes and more than 7 million twenty-foot equivalent unit (TEU) containers.
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2024-01-04 22:44:43
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