The Project company, Suministradora de Buses K Cuatro (the “Company”) is a joint venture between Inversiones Kaufmann S.A., a Chilean vehicle distributor, and Enel X Chile, a subsidiary of the utility Enel Chile. Each currently owns 50 percent of the Company.

The total project cost is estimated at US$391 million, excluding VAT. IFC proposes to provide a senior debt package of US$304 million composed of a US$120 million A loan and parallel loans of US$184 million. The rest of the Project’s cost will be funded through equity contributions from the sponsors. The senior loan is expected to be an Unidad de Fomento-linked loan.

  Santiago de Chile, Chile                                                 

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on the information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site-specific, largely reversible, and readily addressed through existing mitigation measures and good international industry practices (GIIP).

Key E&S issues for the project include: (i) company's resources and capacity to manage E&S risk; (ii) labor and working conditions of staff contracted as part of the project;(iii) pollution prevention, and hazardous material and waste management (battery management and disposal as required by the bus supply contract); (iv) safety features of the E-buses; (v) universal access; and (vi) supply chain management.