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Cai Lan International Container Terminal, LLC
Summary of Proposed Investment
This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
CAI LAN INTERNATIONAL CONTAINER TERMINAL LLC
Port and Harbor Operations
Date SPI disclosed
July 26, 2010
Projected board date
August 26, 2010
Invested: February 24, 2011
Signed: October 26, 2010
Approved: September 17, 2010
View Environmental & Social Review Summary (ESRS),
Cai Lan International Container Terminal LLC (“CICT”) is developing a new container terminal (the “Terminal”) within the Cai Lan Port in Quang Ninh Province in North Vietnam. The Terminal is expected to have a 594 meter berth, a 13 meter draft alongside the berth, four Panamax gantry cranes and supporting yard equipment, and a 25 hectare container yard. It would have 720,000 TEUs of handling capacity at completion. CICT will offer shipping lines significant cost savings by enabling the deployment of larger container ships which cannot call at the Hai Phong Port due to draft restrictions. This will provide much needed capacity to the market, improve Vietnam’s competitiveness and support the expected growth in Vietnamese exports.
Project sponsor and major shareholders of project company
CICT is a 51%/49% joint venture between Cai Lan Port Investment Joint Stock Company (“CPI”) and SSA Holdings International – Vietnam, Inc. (“SSA”). CPI was formed to execute the Project and is owned by Vinalines (Vietnam’s national shipping line), Quang Ninh Port, Hanoi General Export & Import Joint Stock Company (a private Vietnamese trading company), and over one thousand small individual investors, most of whom are employees of CPI shareholders. SSA is an indirect subsidiary of Carrix, Inc., a privately held US company and one of the world’s largest container terminal operators and cargo handling companies.
Total project cost and amount and nature of IFC's investment
The Project is expected to cost US$155 million. The proposed IFC investment is an A loan of up to $38.75 million for IFC’s account. IFC would also help mobilize up to $62.25 million in B loans and/or parallel loans.
IFC investment as approved by Board
38.75 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of project and description of site
The Terminal is located within Cai Lan Port in Quang Ninh Province, about 170 kilometers east of Hanoi.
Anticipated development impact of the project
The Project is expected to deliver considerable development impact by (i) reducing the costs of transportation, thereby benefitting shippers, shipping lines and consumers; (ii) encouraging other terminal operators to improve the efficiency of their own terminal facilities, thereby spurring increased trade in the region; (iii) creating additional port revenues for Vietnam; and (iv) introducing international port operation and management know-how to North Vietnam, resulting in an upgrading of the skills of the local workforce.
IFC's expected development contribution
IFC's expected additionality includes (i) providing and mobilizing long term financing which would not otherwise be available without IFC's involvement; (ii) leading the financing effort through close cooperation with other lenders; and (iii) creating a strong demonstration effect for private investment in Vietnam, especially in the current global economic climate.
Environmental and social issues - Category B
This is a Category B project and it involves the development of a new container terminal within the footprint/premises of the existing operational Port located near but outside the Ha Long Bay World Heritage Site and its buffer zone. The Terminal impacts will be time limited (short term during construction) and site limited (within immediate port area) and is not expected to result in significant long term impacts. The Company will also put in place an appropriate social, environmental, occupational health and safety management system (SEMS), consistent with IFC Performance Standards, to manage such project impacts and operations.
For inquiries about the project, contact:
Mr. Bob Watters, Board Member
Cai Lan International Container Terminal Limited Liability Company
No. 1, Cai Lan Road, Ha Long City, Quang Ninh, Vietnam
Tel: (84) 33 351-5655
Fax: (84) 33 351-5656
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Local access of project documentation
CICT will make available for a public review the PortCoast Environmental Impact Assessment (EIA), the Environmental Resources Management (ERM) Gap analysis and CICT’s Environmental and Social Action Plan (ESAP) in a culturally acceptable manner and in the host country language at the headquarter office of Vietnam National Shipping Lines (Vinalines) located in the Ocean Park Building, 1 Dao Duy Anh Street, Dong Dai District, Hanoi, (contact person: Ms. Minh Nguyet).