Transambiental S.A.S. main shareholders are T-Caribe Holdings (63%) and Organización SUMA (37%). The main project sponsor is T-Caribe Holdings, a fully owned subsidiary of Ashmore Infrastructure Colombia Fund (AFIC). ACIF is a private equity fund with investment commitments for over US$ 230 million which obtained its first closing in July, 2010. Organización SUMA, a local company, is a subsidiary of Grupo SI, and the strategic operational sponsor of the project. Grupo SI has 5 active bus fleet operations linked either to BRT or SITM Systems (Bogota, Cali and Lima); and is leading the structuring of the public transport systems in 3 cities in Central America (Guadalajara, Tijuana, and San Salvador).

The total project cost is estimated to be US$109 million including (i) the investment in the new bus fleet, (ii) funding of FUDO trust responsible for paying for the acquisition of the existing bus fleet and subsequent scrapping, and, (iii) interest during construction, financial fees and funding of the DSRA.

The proposed IFC-led financing package for US$72 million includes a US$24 million A Loan for IFC’s own account. The remainder of the project will be financed with parallel lenders and local/international commercial banks.

15.44 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.44
Equity

* These investment figures are indicative

Transambiental is headquartered in Cartagena, Colombia. The city of Cartagena is located on Colombia’s North Atlantic Coast, and is the capital of the department of Bolivar. The port city has a total population of approximately 1 million people and is the fifth largest city in the country.

The Project will directly support the: (i) upgrade the bus fleet by disposing of old vehicles that operate below safety and environmental standards and introducing new ones; (ii)streamline the operations through route improvements and schedule optimizations which will in turn help to reduce traffic congestion; (iii) improve labor conditions by formalizing employment and reducing working hours as well as making available employment opportunities with social security benefits; (iv) reduce Co2 emissions generated by reduction of the bus fleet and more environmentally friendly fuel as buses will run on natural gas; and, (v) improve the quality of the infrastructure services provided through the top of the line buses, that include air conditioning systems, which is a luxury enjoyed by a small portion of the population.

Longer tenor senior loan: Local commercial banks are currently overexposed to the sector by having financed mass transport systems in many of Colombia''s largest cities. Transcaribe is the most recent integrated mass transport system program being launched by the government. Given their existing exposure and experience in failing BRT systems in intermediate cities, local banks lack the appetite to finance Transcaribe or any of its components, such as Transambiental. IFC''s investment, a long term project finance loan will provide the adequate capital structure and necessary funding to the Project which is not available in the local market.
Resource mobilization: IFC will take the leading role to arrange the financing by conducting the due diligence, negotiate a deal structure and compose a common financing package. IFC is bringing in a unique blend of experience and knowledge of transportation and the integrated bus system in Bogota thereby providing a significant comfort and a stamp of approval of the Project to other lenders.
Political risk mitigation: Mass transport in Cartagena is extremely important for the majority of the city''s low income population. Mass transit related problems could be potentially politicized with the negative impact for private concessionaires. Therefore, Transambiental and its sponsors welcome IFC''s participation to help mitigate some of these risks. IBRD was involved in the structure of most intermediate cities mass transport systems and will provide support based on their experience on how to assess and mitigate the risk.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Payment to Government	Annual Payments ($M)		Not Available	Not Available	Not Available
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Stakeholder Engagement(%)	Stakeholder Engagement(%)		Not Available	Not Available	Not Available
Human Resources Policies and Procedures(%)	Human Resources Policies and Procedures(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available
Affected communities protection(%)	Affected communities protection(%)		Not Available	Not Available	Not Available
Direct Employment (#) - Operations and Maintenance	Employment (#)		Not Available	Not Available	Not Available
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#)		Not Available	Not Available	Not Available

The project is categorized as B in accordance to IFC’s Environmental and Social Sustainability Policy because of the limited number of environmental and social (E&S) impacts and risks the operations and maintenance (O&M) of the SITM is expected to generate, all of which can be avoided or mitigated by adhering to standard international best practices, such as those described in the World Bank Group Environmental, Health and Safety Guidelines (EHS Guidelines) and the applicable performance standards (PS) identified above. The most critical environmental, social, health and safety (ESHS) considerations include: - ensuring the safety, security, accessibility, efficiency and reliability of the system for users; - ensuring life and fire safety of all facilities and promoting emergency preparedness and contingency planning for all activities; - developing a highly trained, motivated and disciplined workforce; - implementing regular maintenance and upkeep of the main bus terminal, bus fleet and associated infrastructure, including good environmental management of solid and hazardous wastes, water effluents, air emissions and noise levels, as required by host country laws and in alignment with the EHS Guidelines.

PS5 : Land Acquisition and Involuntary Resettlement is not applicable to the project as all resettlement activities will have been managed and completed by Transcaribe prior to commencement of operations of the system. PS6: Biodiversity Conservation and Sustainable Natural Resource Management is not relevant given that the SITM will operate in a purely urban, built and highly intervened environment, with absence of critical, sensitive or endangered habitats/ecosystems and flora/fauna. PS 7: Indigenous Peoples does not apply given the absence of indigenous groups in the area/region. PS 8: Cultural Heritage was applied by Transcaribe during Phase I activities where the project mapped archeological areas of interest and concern for the project, evaluated risks and impacts of the project on these, and implemented mitigation and management measures, including chance find procedures during construction works. Transcaribe will continue to oversee and manage the protection of cultural heritage in and around the city as Cartagena is a UNESCO recognized World Heritage Site of Importance.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.