Alfaport Voka warns of “a drama for the entire economy”. In doing so, the Antwerp federation is responding to the decision by Antwerp’s Bestend deputation to postpone the processing of permit applications to the maximum until the Flemish Parliament has approved a nitrogen decree.
“For months, experts have been warning that a nitrogen decree is crucial to avert a total permit freeze in the short term,” an Alfaport Voka press release reads. “It seems that those fears are now coming true with the decision of the Antwerp Permanent Deputation.” Deputy Luk Lemmens (N-VA) had it recorded in the newspaper De Tijd that “the province postpones the processing of permit applications or extends the decision period”. The deputation maintains this practice as long as the Flemish Parliament has not approved a nitrogen decree.
“Those who cried that the doomsday scenario of a total permit freeze was fiction are now painfully proven wrong,” says Alfaport Voka director Stephan Vanfraechem. “In other words, it is no longer five to twelve; no, we are well past the deadline. For the industry but also for the necessary infrastructure works in the port, this is a tragedy.”
Suffering
The Flemish government entered the summer recess at the end of July 2023 with a nitrogen stalemate. As recently as mid-July, CD&V refused to put its signature to the nitrogen agreement previously agreed in March. Subsequently, Flemish environment minister Zuhal Demir (N-VA) tried to push through a number of decisions single-handedly via ministerial instructions, which she later withdrew again.
On 20 July 2023, it became known that the Council for Permit Disputes had annulled the environmental permit for British chemical giant INEOS’ new ethane cracker ‘Project One’ in the port of Antwerp. The Flemish government was then given six months to resubmit a permit application.
Impasse
The annulment of the permit for INEOS’ billion-dollar project, hit hard in employer circles. The lack of a nitrogen decree is also pernicious for the economy, it sounds. “This is just about the worst imaginable scenario for the economy in our region. And actually for the entire investment image of Flanders worldwide,” said Alfaport Voka, urging the Flemish government to find a way out of the impasse very quickly.
“A draft nitrogen decree is before the Flemish parliament today. If the Council of State formulates no insurmountable comments, the nitrogen decree can in principle be approved immediately,” Alfaport Voka echoes.
No ultimatum
In the meantime, to ensure the project’s survival, chemical giant INEOS must seek 400 million euros. The company needs the money to pay the bills that keep coming in for the yard, which has been shut down by the Council for Permit Disputes. Because the licence has been annulled, banks are no longer paying out money from existing loans.
INEOS chief Jim Ratcliffe had already had summit discussions about this with Prime Minister Alexander De Croo, Flemish prime minister Jan Jambon and Antwerp mayor Bart De Wever. The company did stress in a written response that it “did not give an ultimatum” to obtain a Flemish guarantee for the construction of an ethane cracker in the port of Antwerp.
Liquidity
“However, there is an absolute necessity to find an acute solution to the liquidity issue,” INEOS reads. Because the environmental permit for the much-discussed cracker was annulled, the company says existing credit lines have been frozen.
“As a result, INEOS urgently needs to look for a bridging loan. Because the bills keep running at a rate of €100 million per month. Therefore, it is particularly important that the company has a new licence quickly, the condition for being able to claim the existing debt financing again.”
The company received a €500 million guarantee from Flanders. Of this, 75 million has already been activated. The remaining amount is available as a guarantee for the bridging loan.
