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Rabat – Tanger Med Port Authority (TMPA), a Moroccan state-owned company in charge of the development of the Tanger Med Port Complex (TMPC) is planning a massive $714 million backed by the World Bank.
According to a recent statement from the World Bank (WB), the investment plan will primarily focus on extending the capacity of passenger and truck terminals and modernizing its zone of imports.
The Tanger Med Port Complex is looking to raise €350 million ($384 million) in debt financing, to fund the capital expenditure related to the expansion.
The WB statement details that the financing package comprises a loan of up to €100 million ($ 110 million) from the International Finance Cooperation (IFC) and commercial loans of up to €255 million ($ 274 million) benefitting from the Multilateral Investment Guarantee Agency’s (MIGA) Non-Honoring of State-Owned Enterprise (NHSOE) cover.
MIGA’s NHSOE is an investment risk mitigation instrument the WB uses to incentivize private actors to issue loans to state-owned companies in the developing world.
MIGA, a WB agency specializing in offering political risk insurance, has been requested by J.P. Morgan Chase Bank N.A., London Branch of the United Kingdom, to cover its loans of up to €255 million ($ 274 million) to finance the expansion project.
The MIGA guarantee is expected to have a tenor of up to 15 years against the risk of NHSOE, covering up to 95% of TMPA’s payment obligations under the Loans.
TMPC is the leading container port in Africa and the Mediterranean benefiting from a strategic location with direct maritime connections of more than 180 ports and 70 countries.
The Moroccan port has consolidated its leading position as the number one port in Africa and the Mediterranean with a global traffick of goods of over 100 million tons and over 7 million containers of Twenty-Foot Equivalent Units (TEUs).
Read Also: Container Port Index: Morocco’s Tanger Med Port Ranks Among Top 4 Ports
