Kingdom of Morocco

Tangier Med II Port(Phase II)
Loan No: 602 Interest Rate: 3 %
Beneficiary: Tangier Med 2 Company Grace Period: 5 years
Project Cost: KD 397.0 million Maturity: 22 years
Amount of Loan: KD 50.0 million Repayment: 35 semi-annual installments
Date of Board Approval: - First Installment: 5 years following the first disbursement
Date of Loan Agreement: 2013-12-17 Date of Loan Effectiveness: 2029-02-11

Objectives:

The Tangier Med II port project aims at contributing to the economic and social development in the Kingdom of Morocco, particularly the northern regions, through the construction of a second port. This port constitutes an extension of the existing Tangier Med I port, which began to operate in 2007 and was completed in 2008. The project also aims at meeting the increasing marine traffic demand, thereby making Tangier Med port complex, the largest container port in the Mediterranean region.

Description:

The project, which is expected to be completed by the end of 2016, includes the necessary infrastructure works for the new port, as well as all required facilities and equipment to enable the port to receive and handle large container vessels. The new port will have a total capacity of 5 million TEU (Twenty Foot Equivalent Unit). The project also includes all marine and civil works required for dredging the port basin and approach channel, construction of breakwaters and quays to accommodate and receive large vessels, and ancillary works required for the port operation, in addition to the necessary consultancy services. The project will be executed in 3 phases, and includes the following components:

  1. Infrastructure Works:
    1. Phase I: This phase contains works related to the construction of the first quay (Quay 1). This includes initial works such as site preparation and mobilization of construction equipment required for this phase. It also includes dredging and backfilling works for the deepening and leveling of the port basin and approach channel to the depth of 18 m. In addition, this phase includes the construction of two breakwaters, a main one with a length of 3700 m and a secondary one with a length of 1200 m. Quay 1 is 1200 m long and is divided into 3 berths of 400 m each. The Arab Fund is financing this phase with a KD 50 million loan (loan 558/2010).
    2. Phase II: This phase contains works related to the construction of Quay 2A. This includes initial works required for this phase, dredging works required for the construction of Quay 2A and deepening of the port basin in front of it, in addition to extending the secondary breakwater for 600 m. Quay 2A is 800 m long and is divided into 2 berths of 400 m each. This phase also includes ancillary works needed for the port operation such as service quay and buildings, utilities and roads .
    3. Phase III: This includes the construction of Quay 2B, which is 800 m long and is divided into 2 berths of 400 m each. .
  2. Facilities and Equipment: This includes completing the container storage areas and providing the necessary equipment needed for the operation of the quays, in accordance with the requirements of the project phases.
  3. Consultancy Services: This includes the consultancy services required for completing the project studies, and the construction supervision.

Financing:

The two loans provided by the Arab Fund (for phases I and II) cover about 25% of the total project cost. The project is also financed through a loan from the European Investment Bank equivalent to about KD 76 million (about 19%), a bond issue for an amount equivalent to KD 51 million (about 13%), and contributions to capital for a total amount equivalent to KD 136 million (about 34%). The company and the Moroccan Government will cover the remaining cost of the project and any additional cost that may arise.