UABL is owned by Ultrapetrol (Bahamas) Limited, an industrial transportation company with three primary businesses: the River Business (UABL), the Offshore Supply Business, and the Ocean Business. Ultrapetrol also owns a passenger cruise ship, and is listed on the NASDAQ stock exchange (ticker: ULTR).

The project is estimated to cost $225 million. The proposed IFC investment is an up to $50 million A loan for IFC’s own account.

60.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	60.0
Equity

* These investment figures are indicative

UABL operates on the Paraná-Paraguay river system in South America, which starts in Corumba (Brazil) in the Upper Paraguay river and ends near Buenos Aires (Argentina) in the River Plate on the one hand, and includes the Upper Parana River between Tres Fronteras (Argentina – Brazil – Paraguay) and Confluencia (Argentina), covers over 2,200 kilometers of waterways, and connects landlocked areas of Paraguay, Bolivia, and Western Brazil with the Atlantic Ocean through the River Plate.

The project would help - support agricultural development in inland Paraguay, Bolivia, Brazil and Argentina by connecting farmers to global transportation links for export and expanding the feasible production areas of crops beyond the reach of roads or rail service; - reduce harmful effects on the climate by decreasing UABL's fuel consumption on a per unit of energy basis (and associated emissions) and by replacing truck transport with more environmental friendly water transport; - lower the cost of transportation on the River System, thereby serving as a catalyst for increased trading activity to benefit producers, shippers, and consumers alike; - alleviate the current global food crisis and surging food prices by serving as a link in the supply chain to transport food from farmers to end users cost-effectively; and - create additional employment for the region. The project will also support the development of the increasingly important iron ore and steel industries in Brazil and Argentina, respectively. The project’s success will have a strong demonstration effect for other river transportation projects in the region.

IFC’s involvement would: - provide long-term debt financing for the company that would otherwise be difficult to obtain in the current financial market, - ensure the company’s compliance with IFC environmental and social performance standards; and - offer the company implicit political risk coverage. IFC’s experience in financing other barge projects also allows it to better understand the project risks and create a sustainable financing structure for the project. IFC would be filling a gap in the lending market which results not from the company’s creditworthiness, but from a lack of understanding of the barge business in general.

This project is categorized as B. IFC’s previous review and supervision of the first investment with UABL showed the company met its environmental, health and safety, and social compliance obligations, including the at-approval applicable and relevant IFC policies and guidelines. Issues for this project are similar to those identified for the previous financing and can be mitigated by adhering to generally recognized performance guidelines. The investment program will finance a more efficient vessel fleet which is expected to reduce UABL''s fuel consumption and most associated emissions. The investment program at this time does not include expansion or construction of on-shore facilities.