Cai Lan International
|Country||Republic of Vietnam|
|Signing Date||26 October 2010|
|Total Project Cost||US$ 155.3M|
|ICF Debt Pool Exposure||US$ 27.195M|
|IFI Exposure||US$ 38.750M|
CICT (Cai Lan International Container Terminal) is a joint venture between SSA Holdings International – Vietnam (owned by Carrix Inc.) and Cai Lan Port Investment Joint Stock Company. In Northern Vietnam, Hanoi, Hai Phong, and Ha Long form a triangle of regional development buoyed by expanding manufacturing and agricultural industries. The continued economic growth and expansion of this region require the development of additional port facilities at Cai Lan Port to provide infrastructure for importing and exporting cargos.
The expansion will provide much needed capacity to the market, improve Vietnam’s competitiveness and support the expected growth in Vietnamese exports. Design and construction of the project will be done in accordance with best current practice as well as IFC standards.
The total loan amount is US$ 101M of which US$ 27.195M is from the ICF Debt Pool.
The US$ 27.195M senior loan to Cai Lan will be used to finance land stabilization, dredging, berth expansion and a container yard.
- Strong Project: CICT will be the first terminal in North Vietnam operated by a world-class international port operator providing modern facilities to achieve high ship productivity and shorten ship turnaround time in port.
- Experienced Shareholder/Sponsor: The sponsors all have extensive experience with similar operations and will ensure high productivity, and low cost operations. Carrix is a strong sponsor with a proven management team as well as extensive experience in international operations and green-field developments.
- Solid Project Fundamentals: CICT is well-located to build up its cargo base by capturing a high volume of cargoes to and from the major production and consumption areas of Hanoi and the surrounding hinterland.
The project is part of a Vietnam port master plan to improve port infrastructure in North Vietnam and the Hai Phong / Can Lan areas and to reduce the inefficiencies and congestion resulting from the current location of port terminals. The port’s main development impact will be the improvement of transportation infrastructure, increasing efficiency, competition and reduction of all-in transport costs which will benefit Vietnam as a whole.
It is anticipated that the project will contribute significantly to the economic development of the country, provide employment and tax revenue directly, and indirectly foster competitiveness of Northern Vietnam and Southern China.
Funds: The availability of long-term financing to finance infrastructure projects is limited or not available in Vietnam. Thus in the absence of a bank market, the ICF Debt Pool funds are additional.
Design and Efficiency: CICT port will meet international best practice with respect to environmental standards, as well as comply with IFC environmental standards. The project will also introduce efficiencies within the port sector locally and regionally.