European Bank for Reconstruction and Development (EBRD) has offered to fund the Arab Petroleum Pipelines Co. (SUMED) with $100m, based on a ten-year time-frame, to build a pier and petroleum products trading center in Ain Sokhna, Al Mal reported.
The project’s Phase 1 includes the construction of a pier to receive oil products tankers and LNG. The second phase will build a land storage zone with six tanks.
In search for funding, SUMED entered into negotiations with a consortium of seven local banks to obtain a long-term loan worth $255m to finance the project. The loan will be repaid over seven to ten years and will be used to repay a bridge loan worth $100m in favor of the National Bank of Egypt.
Meanwhile, SUMED is in the process of selecting between two bids, one offered by the above mentioned consortium and the second is led by an Islamic banking institute. The company is revising the project’s timeline to prioritize between two implementation phases, based on the selected financing offer.