ADCB puts $40M into Djibouti project
The money will help finance the building of ENOC-owned bulk liquid storage terminal facility at Doraleh village.
ADCB has signed a US $40 million (Dhs 147 million) project finance deal with Horizon Djibouti Terminals Ltd (HDTL.) The loan will be used to help build a bulk liquid storage terminal facility at Doraleh village, 10 kilometres from Djibouti Port.
Horizon Djibouti Terminals Ltd SAFZ is managed by Horizon Terminals Ltd, part of Dubai-based ENOC. The terminal, designed for the storage and handling of kerosene, diesel, oil, LPG, chemicals and oils, gives ENOC access to the African fuel market.
“The move into Djibouti is all about implementing our strategy of becoming a global player in the international terminalling arena,” says Yusr H. Sultan, chief executive, shipping, terminalling & LPG, ENOC. “We view Djibouti as a gateway to the wider Horn of Africa.”
The facility is scheduled for completion by June 2005. It will have capacity for around 230,600 cubic metres of petroleum products, 7,700 cubic metres of chemicals and vegetables oils, and 1,200 metric tons of liquid petroleum gases. The total cost of the development is approximately US $58 million (Dhs 213 million.)
“ADCB is a bank with a long heritage in creating project finance deals,” says Ahmed Saleh Al Banna, senior vice president, corporate division (Dubai and Northern Emirates), ADCB. “We are extremely excited about this deal and the fact that our loan will provide Djibouti with the facilities it requires to serve the growing demand of both its own country and those that it neighbours,” added Al Banna.
HDTL is owned by Horizon Terminals Limited (HTL), set up in April 2003 with the aim of becoming a global player in the terminal facilities industry. HTL is owned by Emirates National Oil Company (ENOC), but plans are underway to float the company on the Dubai Financial Market within five years.