Abu Dhabi Commercial Bank (ADCB) has signed a US$40mn (Dh147mn) project finance deal with Horizon Djibouti Terminals. The loan will be used to build a bulk liquid storage terminalling facility at Doraleh village, which is 10km from Djibouti Port, strategically located on the Red Sea.
Horizon Djibouti Terminals is promoted and managed by Horizon Terminals, which belongs to Emirates National Oil Company (ENOC). As one of the core banks for ENOC as well as its group companies including EPPCO and Gulf Energy Maritime, ADCB has enjoyed a long term and established partnership with ENOC spanning several years.
“The move into Djibouti is all about implementing our strategy of becoming a global player in the international terminalling arena,” says Yusr Sultan, chief executive, shipping, terminalling & LPG. “We view Djibouti as a gateway to the wider Horn of Africa.”
Construction on the HDTL terminalling facility is in progress and will be completed by June 2005. Project costs are about US$58mn (Dh213mn) of which ADCB is funding 70% and is the sole financier.
“ADCB is a bank with a long heritage in creating project finance deals. In particular we are a dominant player in the oil sector, shipping, civil aviation, chemicals and the LPG industry. We have been able to combine our knowledge and experience in these fields to pull together this loan for Horizon Djibouti Terminals,” adds Ahmed Saleh Al Banna, senior vice-president, corporate division (Dubai and Northern Emirates), ADCB.
The terminal will be designed for storage and handling of jet A1, mogas, kerosene, diesel, fuel oil, pressurised mixed LPG, chemicals and edible oils. Catering to the growing demand for storage facilities in Djibouti, the terminal will be strategically located on the Red Sea which provides the key to vast potential of land locked markets including Ethiopia and will facilitate supplies to East Africa and additional neighbouring countries around the Horn of Africa.
When complete the terminalling facility will provide capacity for approximately 230,600 cbm of petroleum products, 7,700 cbm for easy chemicals and vegetables oils and LPG with a storage capacity of around 1,200 cbm.
The project is being managed under the supervision of Group E&C of ENOC and is being co-promoted by ENOC, Independent Petroleum Group in Kuwait, Essence Management, Boreh International and the government of the Republic of Djibouti.