IDB Invest, Parques Logísticos Effitek Join Forces to Develop the First AAA Sustainable Logistics Park in Ecuador
- The project includes IDB Invest’s advisory services to achieve the EDGE Buildings certification in the Advanced category
IDB Invest has structured a $48 million financial package to complete the construction of the Itulpark logistics park in Quito, Ecuador. It will be the first AAA sustainable logistics park in the country, the highest standard for this type of construction.
Located in the Itulcachi logistics zone, the project is expected to be completed at the beginning of 2025 and will have four ships of new sustainable warehouses that will incorporate photovoltaic solar energy to improve the efficiency and competitiveness of the logistics park. The project will contribute to the development of the outskirts of Quito, helping to decongest the city's urban center, and strengthening one of the country's most important commercial roads.
The loan provided by IDB Invest is worth $16.9 million, which includes the mobilization of resources for $31.1 million comprised of $16.9 million from the ILX Fund private capital fund and $14.2 million from Banco Guayaquil.
The Itulpark logistics park will increase the supply and use of quality logistics centers in Quito, helping to reduce the city's logistics infrastructure gap. Logistics infrastructure is of great importance for generating efficiencies in the distribution of goods, reducing transport costs and congestion.
The project is expected to employ 1,200 people from 2025 onwards and benefit local workers and providers from the neighboring communities of Itulcachi, Palugo, Pintag, Yaruqui, among other neighborhoods, which have higher levels of poverty than other areas of the city.
As part of its development impact mandate, IDB Invest will support Itulpark through its climate advisory services to achieve EDGE Buildings certification in the Advanced category for the project. For this reason, the four warehouses must achieve at least 40% energy savings compared to the base line, plus up to 20% water usage savings.
Furthermore, Itulpark has committed to implementing an environmental and social action plan, which includes improvements in the management of environmental, social, labor and safety and occupational health risks and impacts, thereby improving the efficiency in the use of them resources and contamination prevention, working conditions and safety and health of communities in the area of influence.
This project demonstrates IDB Invest's commitment to supporting the expansion of logistics infrastructure to boost the competitiveness of countries in the region and regional integration.
The deal is expected to contribute to the following Sustainable Development Objectives (ODS) of the United Nations: Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible Production and Consumption (SDG 12) and Partnership for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Itulpark, the most modern logistics center in the country, has state-of-the-art infrastructure and technology for inventory management and storage with the highest standards of environmental sustainability. Itulpark is a specialist in winery rental and distribution centers, which offers modules from 1,000m2 and custom-made spaces (“built to suit”). The total project involves building four industrial buildings of 20,000m2 each. Itulpark was declared the first Logistics Development Center in Ecuador by the Ministry of Production in April 2019. Additionally, it has an Investment Contract with the Ecuadorian State with a guarantee of tax and legal stability for the project for 15 years. Accordingly, the project will have the International Certification in EDGE Advance Sustainability and will have free zone services.