Company name
International Water Services (Guayaquil) Interagua C. Ltda.
Project number
EC-L1159
Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.
E&S category
B
Country
Ecuador
Sector
Water and Sanitation
Status
In implementation
Disclosed date
11/10/2016
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
12/13/2016
Approval date
12/15/2016
Signed date
12/05/2018
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 70,000,000
Currency
USD
Project scope and objective
Incorporated in 2001, Intergua was awarded in April 2001 a 30-year concession to operate, maintain, and build upgrades for the Guayaquil water, sewer, and drainage systems. The company serves approximately 2.6 million people. After 15 years of concession the potable water system now covers approximately 90% of the population with 24-hour uninterrupted service while wastewater system covers around 71% of the population.
Interagua is owned by Veolia (France) through Proactiva Medio Ambiente (Spain), Hidalgo e Hidalgo (Ecuador), Fanalca (Colombia) and Equivia (Ecuador). Veolia is a world leading provider of water, waste management and energy services, with presence in 48 countries.
Interagua is seeking IIC’s long term financing to cover a portion the current 5-year investment program and to refinance part of its existing short-term and subordinated debt. Interagua’s investment program is targeted to maintain and improve service quality of the existing networks and plants, execute rehabilitation projects, install new potable water and wastewater connections, as well as improve and maintain the rain/storm water management infrastructure. Further commitments include achieving specific service targets related to water pressure, continuity of service, water supply, drinking water and wastewater quality standards. The total 5-year investment will be approximately USD 470 Million, of which 23% is financed by Interagua and 77% by third party funds (including allocation of the national budget to the municipality, municipal taxes, and loans to the municipality, among other funds).
The financing for Interagua will contribute to improve its financial capacity by allowing it to extend its debt profile with a tenor of up to 13 years. Furthermore, the partial financing of Interagua’s investment program will contribute to its efforts to continue improving the efficiency and quality of its water and wastewater services and improve the quality of life of the customers served in the concession area and bring major environmental as well as sanitary and health-related benefits.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
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As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
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Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY
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