Environmental & Social Review Summary
Project Number
30088
Company Name
CAUCEDO INVESTMENTS INC
Date ESRS Disclosed
Oct 8, 2010
Country
Dominican Republic
Region
Latin America and the Caribbean
Last Updated Date
Nov 30, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 10, 2010
Signed : Mar 30, 2011
Invested : Aug 29, 2011
Sector
Port and Harbor Operations
Industry
Infrastructure
Department
Regional Industry INF LAC & EUR
Project Description
Caucedo Investments Inc. (“CII” or the “Company”), an existing IFC client, operates the Port of Caucedo (“Caucedo”) under a ten year concession automatically renewable for four consecutive ten year periods. Caucedo, the only deep water dedicated container terminal in the island of Hispaniola is located on the Caucedo Peninsula of the Dominican Republic, approximately 30 kilometers from the capital city of Santo Domingo. Caucedo benefits from its strategic geographic location in the central Caribbean, handling a mix of local and transshipment cargo. The marine terminal comprises an area of approximately 80.5 hectares including quay apron, container stacks and roads, within which there are some 19 hectares of block paving currently utilized for container storage. The main gate of the port is connected to the Autopista Las Americas by a dual carriageway divided access road of about 3.25km in length, which although a public road, is effectively dedicated to port and related traffic.
Caucedo entered into operation in December 2003 and the works for Caucedo’s Phase II expansion project, designed to provide an incremental capacity of 275,000 marine lifts, are ongoing as at October 2010 and are due for completion in last quarter of 2010. The $69 million capital expenditure program includes the construction of a new 300m quay / Breakwater Berth on the inside face of the Caucedo terminal’s breakwater, the acquisition of 2 new mobile harbor cranes for the feeder berth, a 6th quay crane for the main quay and supporting equipment as well as the development of staging yard space on the existing breakwater reclamation. These new investments will allow Caucedo to maximize the throughput of the existing base infrastructure adding capacity in a cost effective manner, improving customer service through improved productivity and a more efficient operation of both berths.
CII is 50% owned by DPI Dominica (“DPI DR”) and 50% by Caucedo Development Corporation (“CDC”). DPI DR is 90% owned by DPI Terminals LLC (“DPI”) and 10% by Dragados S.P.L. DPI is 100% owned by DP World Americas LLC (“DPW”), whose parent, DP World Ltd, is one of the largest marine terminal operators in the world, , with 49 terminals and 12 new developments across 31 countries, and is the main project sponsor. CDC is owned by a number of institutional and private shareholders, led by three local sponsors: Samuel A. Conde, Manuel E. Tavares and the B&R Group since inception of the project. IFC has a long-standing relationship with DPW and has ongoing investments in other 2 of DPW’s terminals (Terminales Rio de la Plata in Argentina and Sokhna in Egypt).
Caucedo entered into operation in December 2003 and the works for Caucedo’s Phase II expansion project, designed to provide an incremental capacity of 275,000 marine lifts, are ongoing as at October 2010 and are due for completion in last quarter of 2010. The $69 million capital expenditure program includes the construction of a new 300m quay / Breakwater Berth on the inside face of the Caucedo terminal’s breakwater, the acquisition of 2 new mobile harbor cranes for the feeder berth, a 6th quay crane for the main quay and supporting equipment as well as the development of staging yard space on the existing breakwater reclamation. These new investments will allow Caucedo to maximize the throughput of the existing base infrastructure adding capacity in a cost effective manner, improving customer service through improved productivity and a more efficient operation of both berths.
CII is 50% owned by DPI Dominica (“DPI DR”) and 50% by Caucedo Development Corporation (“CDC”). DPI DR is 90% owned by DPI Terminals LLC (“DPI”) and 10% by Dragados S.P.L. DPI is 100% owned by DP World Americas LLC (“DPW”), whose parent, DP World Ltd, is one of the largest marine terminal operators in the world, , with 49 terminals and 12 new developments across 31 countries, and is the main project sponsor. CDC is owned by a number of institutional and private shareholders, led by three local sponsors: Samuel A. Conde, Manuel E. Tavares and the B&R Group since inception of the project. IFC has a long-standing relationship with DPW and has ongoing investments in other 2 of DPW’s terminals (Terminales Rio de la Plata in Argentina and Sokhna in Egypt).
Overview of IFC's Scope of Review
IFC’s due diligence of this repeat investment relied on the periodic and ongoing supervision of Caucedo’s environmental, social and health and safety (ESHS) performance as per the conditions of IFC’s existing investment in the company since 2002 (Caucedo Container Port #11109 or Caucedo Phase I) and on information related to the new activities to be financed under this operation. The review included the analysis of ESHS documentation, including, but not limited to: i) quarterly ESHS reports produced by the company and annual ESHS reports produced by an international consultancy firm (Scott Wilson - UK) for the Lenders of Caucedo Phase I from 2003 to 2010; ii) the company’s and the Construction Contractor’s ESHS management systems, management plans and related procedures; and iii) the company’s and Construction Contractor’s human resources policies and practices. The current ESHS performance of 2 other IFC port projects with Dubai Ports World (“DPW”): Terminales Rio de la Plata in Argentina and Sokhna in Egypt, was also taken into consideration.
The review included a site visit to Caucedo’s facilities and its environs on September 2010 and meetings were held with the Company’s management and staff in charge of ESHS issues, the Contractor, workers, people in the project’s area of influence, and the Ministry of Environment and Natural Resources.
The review included a site visit to Caucedo’s facilities and its environs on September 2010 and meetings were held with the Company’s management and staff in charge of ESHS issues, the Contractor, workers, people in the project’s area of influence, and the Ministry of Environment and Natural Resources.
