Risk sharing facility in the amount of US$6.7 million to help mobilize local bank loans for a busway and traffic management project.
The project started operation in February 2007 and has contributed to reduce travel times and traffic congestion in the city.
About the city:
With over one million inhabitants, Guatemala City is among the largest cities in Central America. Its sustained pace of demographic and economic growth requires significant infrastructure investments especially in the water and transport sectors.
Financing objective:
IFC’s investment is directed to finance the “Transmetro” BRT system including segregated busways, bus stations and terminals and a new bus fleet. A related objective is to help develop local municipal credit markets by risk-sharing a local bank loan.
The structure of the project :
The total financing package for the TransMetro project is Q351 million (US$46.2 million). It comprises two segments: (i) a syndicated loan in the amount of Q279 million (US$36.7 million); and (ii) a 10 year local currency loan from Banco G&T Continental in the amount of Q72 million (US$9.5 million), which benefits from IFC's risk sharing facility for 70% of the exposure (US$6.7 million).
The outcome :
The busway started operation in February '07, reducing by half the travel time from the suburban terminal station to the City Center using public transportation. The capacity and frequency of Transmetro buses have made public transportation available to an additional 20,000 passengers per day.
