📋 Tender Overview
IFC has spearheaded a landmark financing package for a modern shipping terminal in the Umm Qasr Port in Basra Iraqs largest port. The new terminal is expected to significantly reduce vessel turnaround times helping to boost trade enhance the countrys connectivity to global markets and drive economic growth.The 125 million financing package to Basra Multipurpose Terminal BMT at Basras Umm Qasr Port the countrys only deep-water port is one of the largest non-energy-related foreign direct investments in Iraq to date. Umm Qasr serves as the main entry point into Iraq and is vital to sustaining its development and imports as the country rebuilds itself after years of conflict.The financing will help BMT develop a new and efficient container terminal including two new berths and state-of-the-art equipment and increase its handling capacityparticularly for larger vessels to alleviate current bottlenecks and improve operational efficiencies. The financing package comprises a senior loan of 46 million from IFC mobilization of a 39 million loan from the IFC-run Managed Co-Lending Portfolio Program which is a syndication platform and a 40 million parallel loan from the Japan International Cooperation Agency JICA.Over the past several years JICA has comprehensively supported the Iraqi port sector said Shohei Hara Director General of JICAs Private Sector Partnership and Finance Department. Financing this new terminal at Iraqs main port will help boost trade and imports and drive economic growth.The project is part of the World Bank Group efforts to diversify the Iraqi economy and reduce its dependence on state-run businesses and petrochemicals. It will also help strengthen vital infrastructure. As the countrys rebuilding efforts continue demand for containerized goods and raw materials is expected to increase with the ports sector set to play a key role in boosting trade and integrating Iraqs market with worldwide supply chains.Iraqs infrastructure needs are immense and growing said Abdullah Jefri IFCs Country Manager for the Levant region. Only through the private sector can Iraq meet these needs make its economy more competitive and achieve long-term sustainable growth to increase shared prosperity for all.IFC has been participating in the modernization of the Umm Qasr Port for more than a decade. It financed earlier expansions by Gulftainer another terminal operator in 2010 and helped modernize truck access at the port through an equity investment in Nafith Logistics in 2014.
