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| TCBuen |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28479 |
| Company name | Terminal De Contenedores De Buenaventura |
| Country | Colombia |
| Sector | Transportation and Warehousing |
| Environmental category | A |
| Department | Infrastructure |
| Status | Pend PDS-IR |
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| Date SPI disclosed | October 1, 2009 |
| Projected board date | December 10, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Sociedad Portuaria Terminal de Contenedores de Buenaventura (“TCBuen”, or the “Company”) will construct and operate a new container terminal in the port of Buenaventura, the only significant Pacific coast port in Colombia. The Project will involve the development, engineering, construction, dredging, equipment purchases, and operation of the terminal. Once completed, the terminal will handles about 268,000 TEUs of container traffic each year during its first phase. |
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| Project sponsor and major shareholders of project company |
| TCBuen is primary owned by Grup Maritim Terminal de Contenidors de Barcelona (“GMTCB”) and Grupo Empresarial de Pacifico S.A. (“GEPSA”). GMTCB is Spain’s leading terminal operator company, operating 11 terminals around the world. GEPSA is a Colombian developer based in Buenaventura; the group is dedicated to the design, development, and execution of projects in different economic sectors along Colombia’s Pacific Coast. |
| Total project cost and amount and nature of IFC's investment |
| The Project is estimated to cost $224 million. The proposed IFC investment comprises an A Loan of $25 million, for IFC’s own account, a B Loan of $117 million from syndication banks, and a C Loan of up to $15 million. |
| Location of project and description of site |
| Project is located in Buenaventura, Colombia, at the Aguacate Marsh before the Cascajal Island and directly connected to the main national road connecting Buenaventura to main cities in the country. The maritime terminal is about 3km north-west from downtown Buenaventura. |
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| Anticipated development impact of the project |
| The Project is expected to deliver considerable development impact by (i) reducing the costs of transportation, thereby benefitting shippers, shipping lines and consumers; (ii) increasing competition in the market and encouraging other terminal operators in Colombia to improve the efficiency of their own terminal facilities, thereby spurring increased trade in the region; (iii) yielding higher concession revenues to Colombia, which can be diverted to much needed rural development and poverty alleviation programs; (iv) creating jobs in a country still facing high levels of unemployment and income inequality. According to 2006 data 80% of inhabitants in Buenaventura live below the poverty line and 43% are considered to be in extreme poverty (almost double the national rate); and (v) diversifying the cargo mix at Buenaventura as wider variety of shippers are attracted to lower costs of transportation. |
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| IFC's expected development contribution |
| IFC’s expected role in the Project includes (i) playing a counter-cyclical and catalytical role in supporting the Project during the current global financial crisis; (ii) providing and mobilizing long term financing which may not otherwise reach completion, without IFC’s involvement; (iii) supporting an international sponsor committed to operating in Latin America despite current market conditions; (iv) ensuring transparency and compliance with IFC’s social and environmental standards; and (v) helping address Colombia’s significant infrastructure needs; and creating a strong demonstration effect for private investment in fiscally-constrained Colombia and Latin America in general. |
| Environmental and social issues - Category A |
| This is a Category A project according to IFC’s Environmental & Social Review Procedure. The Project is expected to bring economic and social benefits to a poverty-stricken region of Colombia and it will be located in an already impacted area of Buenaventura which has been designated for industrial and port expansion. However, the Project could potentially involve diverse environmental and social impacts, some of them significant, related to: dredging of the access channel and turning basin and corresponding dredge spoil disposal; mangrove and vegetation removal and mangrove restoration in Afro-Colombian lands; livelihood restoration of economically displaced fishermen and land acquisition and resettlement. |
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| For inquiries about the project, contact: |
General Manager
Calle 7 # 3-11, of 903
Buenaventura, valle
Phone: +57 2 2426500
www.tcbuen.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Calle 7 # 3-11, of 903
Buenaventura, valle
Phone: +57 2 2426500
www.tcbuen.com |
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