IDB Invest Supports the Expansion of the Port of Montevideo to Boost Uruguay's Foreign Trade
IDB Invest will provide $103 million in financing to Terminal Cuenca del Plata S.A. (TCP), including the mobilization of resources for $46 million from Banco Bilbao Vizcaya Argentaria S.A. (BBVA) for the design, construction and operation of the expansion of the Port of Montevideo. Additionally, IDB Invest financing will be complemented by a financing facility given to commercial banks by Belgium's export credit agency, Credendo, for a total amount of approximately $340 million.
The expansion project, which includes an estimated investment of more than $500 million, will more than double the port's current international cargo volume and improve the efficiency of the country's most important container port, an important pillar for the growth of the port. Uruguayan economy, enhancing the competitiveness of foreign trade, generating quality employment and positioning Uruguay as a regional logistics player.
All of this will allow the expansion of TCP through the construction of a second dock, designed to receive more vessels of greater draft than the current one available, and a container yard. In addition, TCP has committed to an ambitious environmental and social action plan, which includes improvements in the management of environmental, social, labor, and occupational health and safety risks and impacts, optimizing efficiency in the use of resources and preventing pollution.
The project demonstrates IDB Invest's commitment to supporting the development of port infrastructure to boost the logistical competitiveness of imports and exports of the countries in the region, and regional integration, given that Uruguay's neighboring countries will also benefit from the expansion and greater competitiveness of TCP.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) Climate Action (SDG 13) and Partnerships 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 390 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.
About Terminal Cuenca del Plata S.A and Katoen Natie Group
Terminal Cuenca del Plata S.A. is a joint venture of the Katoen Natie Group (KNG) and the ANP (80% and 20%, respectively). TCP manages and operates the container terminal at the Port of Montevideo (Uruguay). KNG operates port and logistics terminals and on-site platforms. The group also provides all types of semi-industrial and supply chain services to various sectors, and designs, builds and manages logistics platforms. KNG, a global provider of logistics and distribution services, has more than 400 operating units including terminals, logistics platforms and waste treatment facilities around the world and with facilities in Europe, the Far East, North and South America and Africa.
BBVA is a global financial group founded in 1857. The entity is present in more than 25 countries, has a leading position in the Spanish market, is the largest financial institution in Mexico and has leading franchises in South America and Turkey. BBVA contributes through its activity to the progress and well-being of all its stakeholders: shareholders, customers, employees, suppliers and society in general. In this sense, BBVA supports families, entrepreneurs and companies in their future plans, and helps them take advantage of the opportunities provided by innovation and sustainability. Likewise, BBVA offers its clients a differential value proposition, leveraged on technology and data, helping them improve their financial health with personalized information when making financial decisions.