The fund will be managed by EMP Latin American Management LLC (EMPLA) a joint venture between EMP Global LLC (EMP Global) which owns 60% of EMPLA and Carina Capital Partners an entity owned and controlled by former senior members of the investment team of the $1.1 billion AIG-GE Capital Latin American Infrastructure Fund L.P. (LAIF). EMPLA is part of the network of EMP Global, an independent private equity fund manager based in Washington, DC, that has been manager or principal advisor to ten private equity funds covering Asia, Latin America, CEE/Russia, Africa and the Middle East. EMPLA currently manages LAIF, the largest private equity fund focusing exclusively on infrastructure in Latin America and the Caribbean.

The target size of the Fund is between $150-300 million. The proposed IFC investment is up to $50 million.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity	0.0

* These investment figures are indicative

CAMIF will invest primarily in Central America (including Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama) and Dominican Republic, with a partial allocation to Mexico and Colombia.

Infrastructure investment remains among the most important challenges facing Central America. The region’s ability to grow, compete, and reduce poverty is constrained by bottlenecks in the power, water, road, ports and rail sectors. Services such as water and energy, which are essential for modern industry and commerce and improve health and social welfare, need to be improved. The infrastructure needs are expected to become even more significant in the context of further regional economic growth and integration. While the public sector still has a large role to play, private sector involvement is required in order to address the infrastructure challenge.

A key challenge facing developers of private or public-private partnership infrastructure projects has been the availability of subordinated debt and/or equity capital which have remained a scarce commodity in Central America. This project will thus address a key constraint to the increasing involvement of the private sector in the development of infrastructure projects in the region. This will free public sector capital to be invested in other priority sectors.

The Fund’s portfolio companies will benefit from having an investor capable and willing to share its industry and financial expertise as well as to play an active role in strategic development, implementing change, and establishing contacts with partners. The fund’s participation in these activities would help the client companies to be more competitive both on the regional and international levels.

CAMIF is also expected to impose market discipline on investee projects, leading to better alignment with demand for infrastructure services, more efficient management and lower operating and maintenance cost.

IFC will support the development of the first dedicated regional infrastructure mezzanine fund for Central America and of a new asset class in the region. IFC’s participation in the Fund is expected to bring comfort to other potential investors in a socially relevant new fund sector. With its knowledge of infrastructure, Central America, structured finance and mezzanine investments, IFC’s participation is expected to encourage the Fund to invest more aggressively in Central America and in particular in frontier countries and socially relevant infrastructure sectors such as utilities. IFC will also participate on the Advisory Board to provide guidance on governance issues.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will determine how the Core Investment Team will adapt and expand EMP Global''s existing environmental and social management systems for risk analysis to the Fund, analyze the activities proposed to be supported with IFC financing for types of transactions and infrastructure sectors, and determine the applicable requirements, that are expected to be:

- The IFC FI Exclusion List,
- The applicable National Social and Environmental Laws and regulations of the countries were investments are made, and
- The IFC Performance Standards (PS).

IFC will also review the capacity of CAMIF to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, CAMIF will be required to:

- Develop or upgrade, if necessary, the SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that investments supported by IFC financing are in compliance with the Applicable Requirements;
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis; and
- Submit a periodic report to IFC describing the environmental and social performance of CAMIF’s investments.

For all category A subprojects, CAMIF will need to provide IFC, prior to investing, information relating to CAMIF’s assessment and management of social and environmental risks.