|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers an equity investment by Dragados SPL (“Dragados”) of Spain into its Jingtang Harbor Expansion project in China. The investor has applied for a MIGA guarantee of €6.74 million for a period of up to 15 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
Dragados made its initial investment into the project in 2005. The project involved the acquisition, operation and management of two container berths in the port of Jingtang, Hebei Province. MIGA issued a guarantee of €4.8 million to Dragados in April 2005 covering its initial equity investment in the project.
Since implementation in 2005, the project has made substantial progress in terms of increasing business volume of container throughput and improving the berths’ operational and financial performance. Given the fast developing business in the port, the current facilities for the container berths, including the container yard, are unable to meet the fast growing demands for imports and exports of containers. Therefore, Dragados has decided to make an additional investment for the expansion of the two berths so as to increase their capacity to handle container throughput.
Environmental and Social Categorization
The project is a Category B under MIGA’s environmental review procedures. Click here to view the Environmental and Social Review Summary.
The project is expected to increase port capacity to handle container throughput. The project will also generate improved port functions and efficiency, introduction of advanced computer management techniques, increased employment, and contribution to government revenues. The project will also support growth in other sectors that include machinery, construction, transport, and other related regional economic development in the area.
MIGA’s participation in the project and its assistance to the transport sector in China is fully consistent with the World Bank Group’s Country Partnership Strategy for China for 2006-2010, in particular to promote private sector participation in physical infrastructure and services. The Jingtang Harbor Project and its expansion constitute the first transportation project in China for MIGA. MIGA’s continued support is important for Dragados to proceed with the additional investment and operate the project.