Summary of Proposed Investment
Project Number
10491
Company Name
ANDRADE GUTIERREZ CONCESSOES SA
Date SPI Disclosed
Mar 1, 2001
Country
Brazil
Industry
Infrastructure
Projected Board Date
Apr 5, 2001
Status
Completed
Sector
Water and Wastewater Utilities
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : May 1, 2001
Signed : Nov 5, 2001
Invested : Apr 23, 2002
Project Description
Incorporated in November 2000, AGC has been established as a holding company that focuses on infrastructure businesses. Existing projects include five Brazilian toll road concessions and a minority stake in the country''s first partially-privatized state water company. The focus of AGC''s investment strategy will be in the privatization of state-owned water companies, private toll roads and other concession based infrastructure businesses in Brazil.
IFC''s strategy in infrastructure development has been to assist Brazil in modernising its infrastructure by encouraging the participation of the private sector in the provision of infrastructure services. The investment would also be strongly in line with IFC’s strategy of supporting projects which demonstrate the viability of private investments in the newly opened and more difficult infrastructure sectors, such as water and sanitation, where local financial resources are limited and thus IFC can play an important role in structuring and mobilization. AGC, as other private water operators, is facing relatively short maturity in local financial markets and does not currently have reasonable access to long-term capital funds for its investments. IFC''s support could help develop local capacity to participate in the privatization of a public utility sector.
IFC''s strategy in infrastructure development has been to assist Brazil in modernising its infrastructure by encouraging the participation of the private sector in the provision of infrastructure services. The investment would also be strongly in line with IFC’s strategy of supporting projects which demonstrate the viability of private investments in the newly opened and more difficult infrastructure sectors, such as water and sanitation, where local financial resources are limited and thus IFC can play an important role in structuring and mobilization. AGC, as other private water operators, is facing relatively short maturity in local financial markets and does not currently have reasonable access to long-term capital funds for its investments. IFC''s support could help develop local capacity to participate in the privatization of a public utility sector.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
José Augusto Gomes Campos
Rua dos Pampas, 484- Prado
30410-900- Belo Horizonte- MG
Fax: (5531) 3290 6307
Rua dos Pampas, 484- Prado
30410-900- Belo Horizonte- MG
Fax: (5531) 3290 6307