PROJECT

Projects

Environmental & Social Review Summary

Project Number

40784

Company Name

ALOREEN INVESTMENT

Date ESRS Disclosed

Dec 21, 2020

Country

Iraq

Region

Middle East

Last Updated Date

Sep 30, 2021

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Mar 29, 2021
Signed : Jun 23, 2021
Invested : Sep 28, 2021

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Regional Industry INF MCT

Project Description

 The Umm Qasr Port (UQP or the Port) is located approximately 70 km south of Basra, Iraq, and is considered Iraq’s main port handling most of the container traffic and serving a large portion of the Iraqi population. Aloreen Company for Investments (Aloreen or the Company) has been operating since 2016, under a 25-year concession agreement from the General Council for the Ports of Iraq (GCPI), with the commercial name of Basra Multipurpose Terminal (“BMT”), a multipurpose terminal (“Terminal 1”) at UQP. The Company is now seeking to increase its overall capacity by developing a new terminal exclusively dedicated to containers (Terminal 2 or the Project). IFC will provide up to US$ 45 million in senior debt financing to the Company from IFC’s own account and help mobilize additional financing from other lenders.

 

Construction activities for Terminal 2 started in 2017 and are expected to be completed in the course of 2021. Once phase 1 is completed, the new terminal will have an annual handling capacity of 0.4 million twenty-foot equivalent unit. The Project development entails the construction of a 611-meter quay wall, a 40 ha containers yard, one Ro-Ro berth, and one heavy lift area. Terminal 2 is constructed within the property of state-owned GCPI and therefore all necessary environmental permits are their responsibility. Construction activities include dredging works, erection of a quay wall, ground improvement; setting of pavement & utilities; electrical & communication technology (ICT) installation; and buildings of other facilities warehouses. Royal Haskoning DHV is the project Engineer, ENKA is the main Engineering, Procurement and Construction (EPC) project contractor for the construction of the quay wall and related dredging activities (completed in 2020), while Menard was retained for soil improvement work (completed in March 2020). Under agreements signed with GCPI, BMT may construct a dredger service berth within the Umm Qasr Port, the location and design of which has not yet been defined.

 

At the time of IFC’s review, in July 2020, the construction activities yet to be undertaken included the construction of the few operational utility buildings and the mechanical-electrical package. BMT is in the process of tendering this last package.

Overview of IFC's Scope of Review

   IFC’s review consisted of appraising the project technical, environmental, health, safety and social (E&S) management system, including policies, plans and procedures, submitted by the Company.  In addition, human resources (HR) policies and procedures as well as the environmental, health, safety (EHS) information related to Terminal 1 operations were reviewed. An external consulting firm was contracted to review project construction and Company’s operation performance, conduct interviews with BMT management team (June 2020), and undertake a field visit to the project site (July 2020). The IFC E&S team also held multiple virtual meetings with BMT management and management of the project Sponsor and main shareholder, Terminal Investment Limited Sàrl (“TIL”). No site visit could be conducted by the IFC team considering the current travel restrictions due to COVID-19 pandemic. IFC will visit the project as soon as the situation allows.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
1.1.1.1. ESIA_BMT Yard 5_Comprehensive report_June 2018.pdf
1.1.1.2. ESIA_BMT Yard 5_Non technical summary_November 2018.pdf
1.1.1.3. ESIA_BMT Yard 5_Scoping Report_January 2017.pdf
1.1.1.4. ESIA_BMT Yard 5_Stakeholder Engagement Plan_February 2019.pdf
1.1.1.5. BMT_ Yard 5_Project E&S Risk Register_June 2018.pdf