Summary of Proposed Investment
Project Number
10201
Company Name
Tecon Salvador S/A.
Date SPI Disclosed
Aug 22, 2000
Country
Brazil
Industry
Infrastructure
Projected Board Date
Sep 26, 2000
Status
Completed
Sector
Other Support Activities for Transportation (Grain Terminals, Cargo Terminals, Airport Operations)
Date Revised SPI Disclosed
Aug 28, 2000
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Dec 1, 2000
Signed : Jan 19, 2001
Invested : Apr 9, 2001
Project Description
Tecon Salvador S.A. is a special purpose Brazilian company that owns and operates a 25 year lease of the container and general cargo terminal (terminals PS-3 and PS-4) in the port of Salvador. The lease was publicly tendered in December 1999 and was signed in March 2000. Shareholders of the company are Wilport Operadores Portuários S.A. and Sobrare Servemare S.A., both wholly owned subsidiaries of Wilson Sons de Administração e Comércio Ltda. The project comprises the rehabilitation and operation of a container and general cargo terminal of the Port of Salvador, State of Bahia, in the northeast of Brazil. The project includes the purchase of equipment including portainer and auxiliary equipment, paving of back-area, building of a warehouse and administration buildings. The civil works are expected to be completed by August 2001. The equipment will be bought through 2002 but most of it will be acquired by January 2001.
Since the devaluation of the Real, long-term funding for infrastructure projects has become difficult to access. Sponsors consider that IFC’s experience in the port sector, which is well recognized among financial institutions, will improve the chances of attracting additional sources of financing. IFC''s participation will lend support to the Government’s efforts to reduce the "Custo Brasil" and improve the competitiveness of Brazil’s private sector. Serving the State of Bahia, the Salvador Container Terminal project is the single most important container terminal in the region and is critical to the development of Bahia, one of the northeast states of Brazil which the Bank Group has targetted for assistance because of the high levels of poverty, significant resources, and the state government''s openness to private sector development. IFC''s participation will play a catalytic role in attracting international financing to this new sector, decreasing container handling costs to consumers and producers, and fostering investment in a region of Brazil in most need of development.
Since the devaluation of the Real, long-term funding for infrastructure projects has become difficult to access. Sponsors consider that IFC’s experience in the port sector, which is well recognized among financial institutions, will improve the chances of attracting additional sources of financing. IFC''s participation will lend support to the Government’s efforts to reduce the "Custo Brasil" and improve the competitiveness of Brazil’s private sector. Serving the State of Bahia, the Salvador Container Terminal project is the single most important container terminal in the region and is critical to the development of Bahia, one of the northeast states of Brazil which the Bank Group has targetted for assistance because of the high levels of poverty, significant resources, and the state government''s openness to private sector development. IFC''s participation will play a catalytic role in attracting international financing to this new sector, decreasing container handling costs to consumers and producers, and fostering investment in a region of Brazil in most need of development.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Demir Lourenco
Tecon Salvador S.A
1551 Av. Da Franca, Portao 2, terminal de Containeres
Comercio-Salvador
BA 40010-00
Tecon Salvador S.A
1551 Av. Da Franca, Portao 2, terminal de Containeres
Comercio-Salvador
BA 40010-00