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Projects

Project Brief

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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Jingtang Harbor Expansion Project
Project ID
5182
Fiscal year
2010
Status
Not Active
Guarantee holder
Dragados Servicios Portuarios y Logísticos
Investor country
Spain
Host country
China
Environmental category
B
Sector
Infrastructure
Date SPG disclosed
May 20, 2009
Project Board date
June 18, 2009
Gross exposure
 $16.7 million
Project type
Non-SIP

View Summary of Proposed Guarantee


MIGA has issued a guarantee of €11.5 million to Dragados SPL (Dragados) of Spain for its investments in the Jingtang Harbor Expansion project in China. The coverage is for a period of up to 15 years against the risks of transfer restriction, expropriation, and war and civil disturbance. This contract replaces an earlier guarantee issued by MIGA to cover an equity investment into the first phase of the project. This expanded guarantee covers both the first phase of the project and additional investments for the second phase.

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 in Hebei Province. 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 is making an additional investment for the expansion of the two berths in order to increase their capacity to handle container throughput.

The project is expected to increase port capacity to handle container throughput. The project will also improve port functions and efficiency, introduce advanced computer management techniques, increase employment, and contribute to government revenues. The project will 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, 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 was important for Dragados to proceed with the additional investment and to operate the project.

 
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