Summary of Proposed Investment
Project Number
3808
Company Name
AGUAS ARGENTINAS SA
Date SPI Disclosed
Aug 1, 1995
Country
Argentina
Industry
Infrastructure
Status
Completed
Sector
Water and Wastewater Utilities
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Apr 6, 1994
Signed : Nov 10, 1994
Invested : Feb 9, 1995
Project Description
Summary Of Project Information (SPI)
| Project Name | Argentina - Aguas Argentinas S.A. |
| Region | Latin America and Carribean |
Sector
Project No003808
Projected Board DateAugust 5, 1995
Company NameAguas Argentinas, S.A.
Technical Partner and/or Major Shareholders
Aguas Argentinas’ (Aguas) major shareholders are: Lyonnaise des Eaux (25%) from France and Sociedad Comercial del Plata (19.5%) from Argentina. As part of an earlier financing package arranged for Aguas, IFC has acquired 5% of the total shares in the Company. Other shareholders are S.G. Aguas de Barcelona (Spain), Compagnie Generale des Eaux (France), Anglian Water (UK), Meller Group (Argentina) and Banco de Galicia y Buenos Aires (Argentina). Also, Aguas’ employees hold 10% of the total share capital. Lyonnaise des Eaux has entered into a management contract with Aguas whereby Lyonnaise will act as the operator and manager of Aguas for the life of the concession.
Project Cost Including proposed IFC investment
The project is an interest rate swap to effectively fix the interest rate on Aguas’ US dollar floating rate obligations under an existing IFC-syndicated loan with notional outstanding amount of US$134.5 million. The loan-equivalent exposure resulting from the swap would be approximately US$2.5 million.
Location of project and Description of site
Metropolitan Buenos Aires
Description of Company and Purpose of Project
Aguas is the holder of a 30-year exclusive concession to provide potable water and sewerage services to Metropolitan Buenos Aires. Under the concession contract, Aguas is committed to an investment program of approximately US$4 billion over the life of the concession. Aguas anticipates raising large amounts of additional debt financing to support its capital expenditure program. As part of its overall financing strategy, the company seeks to fix the interest rate on a portion of its liabilities as favorable market conditions allow, so that its entire liability structure is not subject to interest rate fluctuations.
Environmental Category and Issues
This project is classified a Category C project according to IFC’s environmental review procedures.
The is from the Public Information Center.
| Date SPI sent to PIC | August 1, 1995 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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