Tecon Salvador is 90% owned by sponsors, Wilson Sons de Administracao e Comercio Ltda (Wilson Sons), through two Wilson Sons subsidiaries. The remaining 10% of Tecon Salvador is held by IFC. Wilson Sons is a Brazilian maritime group, founded in 1837. It is currently Brazil’s main tugboat operator, with a market share of over 50%. In addition, the company has operations in container terminals, logistics, shipping agency services, and ship assembly. Wilson Sons comprises over 20 affiliate companies, employing over 3,000 people. It is wholly-owned by Wilson Sons Limited, a company listed on the Luxembourg Stock Exchange and traded in BDR (Brazilian Depository Receipts) on the São Paulo Stock Exchange, BOVESPA.

The total project cost is estimated to approximately $10.0 million, of which IFC would provide up to half in the form of an A-loan, with the remainder provided in the form of a B-loan.

5.90 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	0.40
Guarantee
Loan	5.50
Equity

* These investment figures are indicative

The Port of Salvador is located in the Bay of Todos os Santos, within the City of Salvador, capital of the State of Bahia, in North East Brazil. The Port has three main quays comprising 11 berths (9 of which are operational) and one roll-on roll-off ramp, totaling 2084 meters. The project is located on two adjacent berths in the Port that have a total length of 450 meters.

The incremental development impacts of the proposed project will stem from Tecon Salvador’s ability to increase its operational efficiency, thereby enabling it to respond to strong regional demand, which to date has exceeded its capacity, given its current equipment and facilities. It is expected that follow-on development impacts will include: - reducing transport costs versus the counter-factual of operational inefficiencies; - incremental increases in market access for both importers and exporters, and thus consumers and producers in the Bahia region; - increasing container volumes and containerization rates; - expansion of services offered by shipping lines in the North East, which will benefit from increased terminal efficiency; - increasing demand for inputs from local suppliers; - an incremental increase in jobs as Tecon Salvador is able to expand; and - increasing payments to government in terms of concession payments and taxes. As a result of these impacts, Tecon Salvador will help to multiply the benefits of the region’s export growth, and strengthen Bahia as an investment destination.

Financial Additionality: IFC financial additionality includes: - providing access to long-term finance at reasonable rates, to which the company would not otherwise have access; and - providing financing to Tecon Salvador on a non-recourse basis. Additionally, IFC is able to syndicate additional finance at comparable rates, which Tecon Salvador would not do with equal ease. Non-Financial Additionality: Non-financial additionality includes: - shorter transaction timing given IFC’s familiarity with the company and the sponsor; - a pre-existing loan structure and security package, that can be easily adapted for this financing; and - a strong pre-existing working relationship. IFC’s Role:  IFC’s role in the transaction would be to provide long-term finance at reasonable rates, with a relatively short processing time, and in alignment with Wilson Sons’ overall financing strategy.

IFC’s ongoing review and supervision of the existing investment in Tecon Salvador have shown the company is continuing to meet its environmental, health and safety, and social compliance obligations, including the applicable and relevant IFC policies and guidelines. The 2006 environmental and social review conducted by IFC’s Independent Evaluation Group rated the overall environmental, social, and health and safety performance as Satisfactory, and the current Environmental and Social Risk Rating (ESRR) for the project is B – 2 – Average.