Abou Ghaly Motors - Electric vehicles

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a senior loan of up to EGP 341 million (ca. EUR 6.6 million) to Abou Ghaly Motors ("AGM" or the "Company") to support acquisition of up to 100 Range Extended Electric Vehicles ("REEVs") to be operated as private taxis as part of the Company's London Cab Egypt services and support the expansion of the e-mobility transport sector in Egypt.

Project ID 53556

Status Signed

Location

Egypt

Business Sector

Transport

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Viviane Nosseir
viviane.nosseir@aboughalymotors.com
+20222777600
www.aboughalymotors.com
AGM HQ, KM28 Ismailia Desert Road, Cairo, Egypt

Project ID 53556

Status Signed

Location

Egypt

Business Sector

Transport

Notice Type

Private

Environmental Category

Approval Date

09 Jul 2024

Disclosure date

17 Jun 2022

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Abou Ghaly Motors - Electric vehicles (Arabic) (PDF, 0.48MB)

Project description

Project objectives

The objective of the Project is to support AGM's operational expansion along a low carbon transition pathway through the purchase of additional REEVs, which is expected to have a positive demonstration effect for electric mobility in both the public and private sectors in Egypt. The company is planning to gradually retire the 24 ICE vehicles once the new REEVs are delivered and fully operational.

Transition impact

ETI Score:74

mary transaction impact of the Project is Green as it supports the Company's expansion in transport provision along a low carbon transition pathway following the acquisition and operation of range extended electric vehicles, which are expected to contribute to lower GHG emissions, better

air quality, and reduced dependence on petroleum-based transportation as compared to the baseline.

The secondary transition impact of the Project is Inclusive as it further supports skills development in the e-mobility sector and supports the delivery of safe and more accessible transport for women and people with disabilities.

Client information

ABOU GHALY MOTORS

The Borrower is AGM, an existing Client (53556 - DFF - Project Sparrow (e-mobility)) is a provider of transport solutions in the Egyptian market since 1981. AGM is currently active in car distribution as well as transportation services through their (i) car rental service as a franchisee of Sixt Rental since 2003 and (ii) London Cab service, which provides on-demand and pre-booked taxi services through a ride-hailing application including airport transfers and corporate transportation. AGM's London cab service is praised for its safety, reliability and inclusivity as the first wheelchair accessible cab service in Egypt.

The Company's business model is based on owning and operating their own fleet, hiring and training drivers to the highest standards, and fully automating operations and control software platform.

EBRD Finance Summary

EGP 528,400,000.00

Senior loan of up to EGP 341 million, equivalent to around EUR 6.6 million, expected to be complemented by a EUR 1.4 million of grant funding from ERBD's Special Shareholder Fund ("SSF").

Existing exposure: The Bank's original commitment of EGP 187.4 million (ca. EUR 3.6 million) was fully disbursed in October 2022 to finance the acquisition of REEVs. The outstanding exposure as of 9 July 2024 is EGP 158.6 million (ca. EUR 3.1 million).

Total project cost

EGP 855,695,118.60

The total Project Cost is EGP 483 million (EUR 9.3 million).

Additionality

EBRD's involvement is considered additional in terms of:

(i) financing structure as the EBRD loan is intended to be complemented by an investment grant to enable realisation of a high capital intensive transaction that is expected to have considerable environmental benefits and strong demonstration effect;

(ii) risk mitigation as the Project supports the Company's expansion along a low carbon transition pathway; and

(iii) standard-setting as the Project introduces higher environmental standards by making use of EBRD expertise and also supports delivery of safe and accessible transport services to women and people with disabilities and training activities relevant to the growing electric vehicle market in Egypt.

Environmental & Social Summary

Categorised B under the Environmental and Social Policy (ESP) 2019. The Project consists of the purchase of 250 REEVs (Tranche 1) and additional 100 REEVs (Tranche 2) to be operated as private taxi as part of the Company's London Cab Egypt services. The Project will support development of the e-mobility transport sector in Egypt and will have environmental and social benefits, resulting in improved air quality and overall safety and efficiency of urban transportation in the cities they will operate. Any potential adverse environmental and social impacts will be site-specific and manageable through implementation of the targeted mitigation measures. The Environmental and Social Due Diligence ("ESDD") including a supply chain risk assessment, has been undertaken by an independent consultant and informed the preparation of specific mitigation measures. The ESDD consisted in visits to the project sites and meetings with the Company's management and their environmental and social staff. It also reviewed the Company's policies, procedures, and practices related to environmental and social matters as well as an assessment of the Company's capacity to manage key risks associated with the project in accordance with ESP 2019.

Key risks identified were those related to occupational health and safety, labour conditions for workforce, road and traffic safety, electric safety and fleet management related risks. The taxi services may be associated with gender-based violence and harassment (GBVH) risks, and therefore appropriate mitigation measures have been included in an environmental and social action plan (ESAP) including the introduction of the emergency button to the company's taxi app and training taxi dispatchers on GBVH-focused response. The ESDD findings indicate that the Company is generally compliant with the local regulations and has the capacity to implement the Project in line with the Bank's performance requirements. At the same time, improvements are required in terms of its overall environmental, social, and safety management systems to bring the Project into full compliance with the EBRD performance requirements. Given that the road and traffic safety has been identified a serious concern during ESDD, the Bank will expect the client to develop and implement a traffic and road safety management system that will align with good international practice and ISO 39001. The company will also manage supply chain risk linked to EVs by developing and adopting a supply chain management system and including legal provisions related to traceability requirements in agreements with the EV supplier. Specific mitigations related to supply chain management have been included in the ESAP.

Targeted mitigation measures have been developed in form of environmental and social action plan and include commitments aimed at improving traffic safety practices, fleet management procedures, a code of conduct for the drivers and GBVH procedures, a stakeholder engagement plan, labour management system, and a grievance review system. The ESAP is agreed by the Client and under implementation. The Bank will continue to monitor the Company's activities through reviewing annual E&S monitoring reports.

Technical Cooperation and Grant Financing

A. Technical Cooperation (TC)

None.

B. Co-investment grants / Concessional Finance (Non-TC)

The EBRD loan is expected to be complemented by a USD 1.5 million (EUR 1.4 million) grant from SSF necessary to complement the financing mix for a highly capital intensive investment plan. The Project supports the expansion of a private sector transport provider along a low carbon transition pathway, solidifying the strong demonstration effect the initial transaction had in the Egyptian e-mobility sector, including in several high-profile events such as the COP-27. The transaction will further improve the Company's carbon footprint, which already decreased by 80% as a result of the implementation of the first transaction.

Company Contact Information

Viviane Nosseir
viviane.nosseir@aboughalymotors.com
+20222777600
www.aboughalymotors.com
AGM HQ, KM28 Ismailia Desert Road, Cairo, Egypt

PSD last updated

16 Jul 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Abou Ghaly Motors - Electric vehicles

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)