| Project description |
Exolgan S.A. (“Exolgan” or the “Company”) operates the second largest container port terminal in Buenos Aires (“BA”). The terminal is located at the Dock Sud area, about 8 km south of BA. The terminal handled about 500,000 TEU in 2007.
Exolgan is implementing an investment program including (1) dredging, construction and extension of the berths and the container yard, (2) purchase of new equipment and land; and (3) other investments including upgrading IT system and facilities. |
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| Project sponsor and major shareholders of project company |
| Exolgan is owned by International Trade Logistics S.A., an Argentine company with three primary businesses: terminal operations (Exolgan), the logistic service, and warehousing service. |
| Total project cost and amount and nature of IFC's investment |
| The project is estimated to cost $102.9 million to finance the investment program and refinance existing debt. The proposed IFC investment comprises an A Loan of $50 million, for IFC’s own account, and up to a B Loan of $25 million from syndication banks. |
| Location of project and description of site |
| Exolgan is located in the Dock Sud area in the Province of Buenos Aires, about 8km south of Buenos Aires. |
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| Anticipated development impact of the project |
| The project will strengthen the Argentine port sector by helping to expand a key container handling facility to better serve Argentine exports and imports. As cargo volumes continue to grow with Argentina’s economic growth and increasing integration with global markets, port facilities will need to be expanded and modernized. The investment will help address Argentina’s need for additional port capacity and increase trade by helping ensure the efficient and timely export of containerized cargo. The investment would help to: (i) reduce the cost of transportation and thereby benefit shippers, shipping lines and consumers alike, (ii) encourage neighboring ports to increase their own efficiency and, therefore, serve as a catalyst for increased trading activity in the country; and (iii) result in more revenues (port fees) to Argentina and additional employment. |
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| IFC's expected development contribution |
| IFC’s involvement would (i) provide long-term debt financing for the Company that would otherwise be difficult to obtain in Argentina due to the continued perception of country risk and under the current financial market, (ii) ensure the company’s compliance with IFC environmental and social performance standards; and (iii) mobilizing other long-term financing through IFC’s B loan umbrella. IFC’s experience in financing other port projects globally is also an important consideration for the Company. |
| Environmental and social issues - Category B |
The Port has been in operation for a number of years and is located in a heavily intervened industrial area of BA. Potential environmental and social impacts associated with the project have been identified and can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, design criteria and basic engineering technology. Resettlement generated by the project is minimal and related impacts will be mitigated. Consequently, according to IFC’s Environmental and Social Review procedures the project has been categorized as B.
To view the environmental documents for this project, click here |
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| For inquiries about the project, contact: |
Chief Executive Officer
Exolgan
Alberti 1780
(B1871ESF) Dock Sud,
Avellaneda, Bs.As., Argentina
www.exolgan.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 |
Exolgan
Alberti 1780
(B1871ESF) Dock Sud,
Avellaneda, Bs.As., Argentina |
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