IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, provides a financing package of $377 million for the construction, operation and maintenance of the first phase of the Multipurpose Terminal of the Posorja Port, in Ecuador. The project is developed by DP World Posorja, a subsidiary created by the company DP World, the third largest container operator in the world in terms of capacity and productivity.
The new terminal, which in its first phase will have an estimated capacity of 800,000 TEU (twenty-foot equivalent units), will compensate for the expansion and load constraints of Guayaquil, Ecuador’s main port. The location of Posorja, closer to the area of free access to the sea, will decrease the average transit time and offer a deeper draft (16.5 meters). Once the new port is completed, vessels of up to 15,000 TEU can operate. The activity of this new infrastructure will generate, in addition, more than 480 permanent jobs.
IDB Invest’s financial package is divided into a loan of $147 million and the mobilization of resources from other investors of $230 million, of which $50 million comes from the China Co-financing Fund for the Americas. IDB Invest offers 15-year long-term financing, which is not available in Ecuador and is necessary to ensure the financial sustainability of the project.
The participation of IDB Invest has incorporated the adoption of environmental and social best practices in the execution of the project, as well as solutions for the reduction of greenhouse gases (GHG) in the port sector of Ecuador.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About DPW Posorja
DP World Posorja is a company committed to the community and the environment, offering customers, partners, shareholders and collaborators ways to create long-term sustainable value, extending its values not only to those who form the DP World family, but also to the entire Ecuadorian community. The work of the Deepwater Port PD World Posorja is part of the 50-year concession to build and operate the first deepwater port in Ecuador and its first phase includes the following: building and equipping the facilities of the Port Terminal of the Port of Deep Water in Posorja (TPPP) and operate said facilities during the delegation period; the construction, operation and maintenance of a 20 km access road to the TPPP that joins the cities of General Villamil Playas and Posorja; the logistics park, which will be developed under the ZEDE modality, expanding a new pole of industrial development and opening up great opportunities for national and international companies, promoting new investments; and the dredging of an access channel of 16.5 meters, which will benefit all users avoiding greater risks and will allow maximizing the cargo capacity of the Post Panamax Ships.