Project Description:
On October 21, 2024, The Multilateral Investment Guarantee Agency (“MIGA”) a member of the World Bank Group, issued a Non-Honoring of Financial Obligations by a State-Owned Enterprise (“NHFO-SOE”) guarantee to Tanger Med Port Authority (“TMPA”), a Moroccan state-owned enterprise in charge of the management and development of the Tanger Med Port Complex (“TMPC”) located in the Strait of Gibraltar. 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. It has consolidated its leading position as the number one port in Africa and the Mediterranean with global throughput of over 100 million tons and over 7 million containers Twenty-Foot Equivalent Units (TEUs).
TMPA embarked on a EUR650 million investment plan mainly focused on extending the capacity of its passenger and truck terminal and modernizing its zone of imports. To this end, it raised EUR400 million of debt. While the MIGA backed facility accounted for EUR203 million of the total debt, IFC provided the remaining balance of EUR197 million from its own account as well as its Managed Co-Lending Portfolio Program (MCPP). The remainder of the CAPEX will be funded through equity contributions. MIGA’s EUR237 million cover to J.P. Morgan Chase and participating banks (Caixa bank and Commerzbank) has a tenor of up to 15 years against the risk of NHSOE, covering up to 95% of TMPA’s principal and interest payment obligations under the facility agreement.
Environmental Categorization:
This transaction was a joint project with International Finance Corporation (IFC); in accordance with MIGA AIP, the MIGA disclosure is linked to IFC disclosure. Click here to view the Environmental and Social Review Summary prepared by the IFC for their proposed support to the project.
Development Impact:
The Project is expected to improve access by increasing TMPC’s container handling capacity through the expansion of the truck terminal of up to 1 million truck units. Approximately 57% of the capacity for Tanger Med Passenger and Ro-Ro terminal is already utilized. The planned expansion will culminate in 13% capacity growth for the truck terminal by 2029 and 43% growth by 2032. The Project has meaningful potential market development effects through enabling improvements in international connectivity. It’s expected to enhance the port’s service offering, including improving the efficiency in the trucks, vehicles, and passengers share.
