MEB and MBO are controlled by entities owned by the Echavarria Obregon Family. This is a well respected economic group in Colombia that holds an important stake (amongst other investments) in Grupo Corona, the leading producer of construction materials, home improvements products, ceramic tiles and sanitary ware in Colombia. The Echavarria Obregon Family controls 72.65% of MEB and MBO.

Other large shareholders of the company are:

- Ership International S.A. (9.50% shareholder), a Spanish company which is wholly-owned by the Alvarogonzalez family and operates in the field of transport, warehousing, and handling of solid bulk commodities; and
- Inversiones Valores y Logistica. (7.01% shareholder) a company owned by Bancolombia, the largest financial institution in Colombia.

The remaining shareholders are individuals who own less than 3.5% of the company.

MEB has requested IFC to provide a long-term A loan of up to $15 million to partially finance the company’s capital expansion program. The total project cost is estimated at $27.1 million.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

MEB is located at the Cartagena Bay on the Caribbean coast of Colombia. The port occupies and area of 13 hectares and it is located in an industrial and commercial zone next to the residential area of El Bosque, in Cartagena. The company’s operations are carried out in the “Isla del Diablo” island (6 hectares), used for the port operations; and in an inland zone (7 hectares) used for container and general cargo storage and offices.

The company manages one of the largest private ports in Colombia that is of significant importance as an integral part of the country’s transport and economic infrastructure. The capital investments will contribute to the development of an efficient and sustainable transport system for the country and will improve the country’s port infrastructure to facilitate Colombia’s growing international trade and reduce handling costs. The expansion and modernization of the port is expected to increase its efficiency, relieve capacity constraints, and improve its operating efficiency by incorporating international best practices in the port industry. The economic benefits of the project will primarily be reflected in incremental cargo and container traffic made possible through expanded capacity at the port. Competitiveness of imports and exports is also expected to improve as a result of the project. The project will also support the Government through increased royalty payments and taxes.

IFC will mobilize the required funding for this operation on terms and conditions necessary for a concession-based project. The project provides an opportunity to promote investments in infrastructure projects in Colombia and its successful financing would have a strong demonstration effect on potential long-term investors, such as pension funds, that the Government of Colombia is trying to involve/attract to the infrastructure sector. IFC will play a key role in creating the appropriate financial structure for the project. IFC’s participation will also promote sustainability by ensuring that the development.

This is a Category B project because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

MEB is an existing port that has been in operation since 1992. The proposed expansion will not significantly modify the company’s existing environmental and social footprint in the area. The company has received the required environmental license to operate and is monitored by CARDIQUE. The Cartagena Port Authority and the association of companies operating in the area (Fundación Mamonal) maintain emergency response, fire protection and spill control procedures and equipment.

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards (PS):

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security