ICBC New Zealand provides a $80 million NZD loan for the 6 Wharf Expansion Project

Project narrative

In 2019, the Industrial and Commercial Bank of China (New Zealand) Limited (ICBC New Zealand) signed a $80 million NZD facility (loan) agreement with Port of Napier Ltd., a state-owned company in New Zealand. This loan carried a maturity of five years, a final maturity date in September 2024, and a floating coupon (interest) rate. Port of Napier Ltd. also signed a $40 million NZD facility (loan) agreement with the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia). This loan carried a maturity of five years, a final maturity date in September 2024, and a floating coupon (interest) rate. Port of Napier Ltd. provided negative pledges over its assets in respect of the sale of assets and other security interests for these facilities. Establishment fees were included as a prepayment within trade and other receivables until the facilities were drawn down. The proceeds of both loans were to be used by the borrower for general corporate purposes and to fund the completion of the 6 Wharf Expansion Project. Record ID#91385 captures the ICBC New Zealand loan; the ICBC (Asia) loan is captured via Record ID#91396. In 2019, Port of Napier Ltd. also entered into a $60 million NZD facility (loan) agreement with Westpac New Zealand Limited (WNIZ) for the same purposes. That loan carried a maturity of four years, a final maturity period date in July 2023, and a floating coupon (interest) rate. The 6 Wharf Expansion Project sought to construct a multi-purpose 350-meter-long, 35-meter-wide wharf along the north face of the Port of Napier's existing container terminal and dredge the sections of the port. 6 Wharf was designed to handle 320-meter-long container ships and 360-meter-long cruise ships and was capable of supporting twin lift gantry cranes and was supported by 400 reinforced concrete piles. The dredging program sought to dredge up to 14.5 meters in the swing basin and harbor entrance to allow for larger vessels to enter and create a new vessel turning area with10 MoorMaster mooring system units. 6 Wharf was also designed to bolster Napier Port's resilience to seismic events such as earthquakes (namely and to resist future rising sea levels. The 6 Wharf Expansion Project was expected to reduce secondary vessel movements (the movement of vessels off wharves to accommodate other vessels) by an expected 100 movements annually, improving operating efficiency, and allow the port to handle more, larger vessels for 24 hours per day (as opposed to the risk of liquefaction) previous situation, where container vessels could only move around the port during daylight hours). In the 10 years before the COVID-19 pandemic, Napier Port — New Zealand's fourth largest port — had experienced 50%, 94%, and 64% increases in containers, cruise ships, and bulk cargo respectively. The 6 Wharf Expansion Project was expected to foster the conditions for its continued growth. The 6 Wharf Expansion Project was estimated to cost between $173 million NZD and $190 million NZD. As part of the project, Port of Napier established the Mana Whenua Steering Komiti, composed of 15 representatives from different marae, hapū and mana whenua entities to assess, monitor, and protect the cultural health of the marine environment, particularly that of Pania Reef, during the project. The designated project site for 6 Wharf was home to several nests of kororā (little blue penguins). A 750-square meter sanctuary, New Zealand's first on-port sanctuary for penguins, was established in response to protect and grow the penguin population; trained handlers were hired to move the penguins nesting in the 6 Wharf project site prior to construction, with approximately 70 pairs moved and 185 birds microchipped, with cameras in two of next boxes set up to broadcast on a live stream channel on YouTube– known as “Keeping Up With the Kororā” for the public to watch. HEB Construction was the lead contractor responsible for project implementation. Heron Construction & Dredging Limited was the key subcontractor for the implementation of dredging works. Beca Group was involved in the design of the project. Cavotec Group AB provided its automated mooring technology. Stantec provided environmental planning services, including for the protection of Pania Reef. Construction was originally planned to commence at the end of 2019 and reach completion in 2022. A groundbreaking ceremony was held on February 5, 2020; at that time, the project was expected to reach completion by the end of 2022. 6 Wharf opened on July 22, 2022, and was named as 'Te Whiti'.