Summary of Proposed Investment
Project Number
9239
Company Name
COMPANIA DE CONCESIONES DE INFRAESTRUCTURA S.A.
Date SPI Disclosed
May 24, 1999
Country
Argentina
Industry
Infrastructure
Status
Active
Sector
Highway Operations (Includes Toll Roads)
Department
Regional Industry INF LAC & EUR
Environmental Category
A - Significant
Previous Events
Approved : Jun 24, 1999
Signed : Sep 28, 1999
Invested : Nov 9, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Argentina: Concesiones y Construcciones de Infraestructura SA (CCI SA) |
| The company is active in toll road concession management, civil construction and related urbanism development. |
| Region | Latin America and Caribbean |
Sector
Project No009239
Projected Board Date: June 24, 1999
Company NameCCI SA
Technical Partner and/or Major Shareholders
Messrs. Nestor Alesso, Carlos Aragon, Luis Aragon, Roberto Servente, and Hector Maurizzio
Project Cost Including proposed IFC investment
Project Cost:US$217 million
Proposed IFC Investment: US$20 million in CCI''s equity and US$20 million in subordinated, convertible, income participating loan.
Location of project and Description of site
Concessions are located in Argentina, Uruguay, Chile and Brazil. Future projects are expected to be located in Latin America
Description of Company and Purpose of Project
CCI is a medium-sized Argentinean company which has historically concentrated in the construction business. Since the beginning of the 1990''s, when Argentina embarked in an ambitious economic reform and infrastructure privatization program, CCI has become substantially involved in the management and operation of private toll road concessions. CCI has been successful in developing this business model in Argentina and in exporting it to Uruguay and Brazil. As a consequence, CCI is currently targeting toll road concession management in the Latin American region as a key area for strategic growth.
The project is expected to strengthen CCI''s capital structure and to provide it with resources to expand its activities. Currently, access to long term funding at competitive terms is very limited for medium-sized companies in this sector. By investing in CCI''s equity, IFC would be supporting the regional transfer of valuable experience and know how by a successful and medium-sized company. The proposed investment would further foster the development of private participation in the sector in Latin American countries that are engaging in road infrastructure privatization. In the medium term, CCI is planning to open its capital by listing its shares in the local stock exchange; IFC''s presence as a shareholder in the Company would lend additional support to this process.
Environmental Category and Issues
The project is an environmental and social review category A project because of its current and future likely social impacts. Key issues include environmental and social performance of existing holdings within CCI’s operating companies; compliance of future projects with local requirements and World Bank policies and guidelines, implementation of corporate environmental management systems.
CCI’s past approach to project implementation has been reviewed on a selected number of investments to evaluate compliance with host country requirements. In addition, an evaluation of compliance with World Bank Group environmental and social safeguard policies and applicable guidelines was undertaken to determine the level of additional assessment and mitigation that CCI will need to apply to future projects. Although CCI currently has in-house capacity to manage these issues, integration of social capacity and selection of external environmental consultants will be key to the successful development of the company’s future pipeline of projects.
CCI will prepare an Environmental and Social Management Plan which outlines plans for capacity building, key environmental and management functions, procedures for future implementation of IFC’s Environment and Social Policies, as well as internal mechanisms for monitoring compliance and reporting to be prepared by CCI. IFC has already conducted training for 13 operational staff focused on project categorization, disclosure and consultation, together with a detailed analysis of World Bank and IFC environmental and social safeguard policies and guidelines.
For future investments, CCI’s environmental/social coordinator will categorize projects and consult with IFC for the first three project categorizations. On investments categorized as A projects CCI will be required to perform the full environmental assessment process required by IFC’s environmental policies and guidelines for this category of project, including social review. A parallel due diligence will be performed by IFC. CCI will inform IFC of Category B projects. A format for the report will be prepared in consultation with CCI’s social/environmental coordinator.
CCI will be required to submit a quarterly report on pipeline investments which will describe the investment, its location, the status of the investment and estimate likely social and environmental impacts.
The is from the InfoShop.
| Host country location of environmental documents | Camara Argentina de la Construccion - Paseo Colon 823 8th floor - Buenos Aires and IFC Resident Mission - Bouchard 547 3rd floor - Buenos Aires |
Date SPI sent to InfoShop May 24, 1999
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-3800
Fax: (202) 974-4384
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
Related ESRS/ERS
