PROJECT

Projects

Summary of Proposed Investment

Project Number

9574

Company Name

Manzanillo International Terminal-Panama S.A.

Date SPI Disclosed

Aug 23, 1999

Country

Panama

Industry

Infrastructure

Status

Completed

Sector

Port and Harbor Operations

Department

Gbl Infrastructure & Natural Resources

Environmental Category

B - Limited

Previous Events

Approved : Mar 16, 2000
Signed : Mar 29, 2000
Invested : Mar 31, 2000

Project Description

Summary Of Project Information (SPI)

Project NamePanama - Manzanillo International Terminal-II (MIT-II)

RegionLatin America and Caribbean
Sector
Project No009574
Projected Board DateMarch 3, 2000
Company NameManzanillo International Terminal - Panama, S.A. (MIT)
Technical Partner and/or Major Shareholders

MIT is wholly-owned by SSA-Panama, Inc. (SSA-Panama), a Panamanian corporation. SSA-Panama is 85% ultimately owned by FRS Service Companies, Inc. (FSC) whose families of companies are collectively referred to as Stevedoring Services of America (SSA). The Motta/Heilbron families from Panama own the remaining 15% of SSA-Panama through three special purpose corporations.

Project Cost Including proposed IFC investment

The estimated project cost is US$162.4 million including: (i) civil works and equipment related to the expansion of existing capacity; and (ii) refinancing of US$101 million of existing term loan. IFC''s proposed investment would include a loan of up to US$15 million.

Location of project and Description of site

The project is located in Panama adjacent to the Colon Free Trade Zone (the CFZ) and Manzanillo Bay, near the Atlantic entrance to the Panama Canal. MIT currently has 1,050 meters of contiguous container berths equipped with six Post Panamax and two Panamax ship-to-shore container cranes. In addition, there is one 200 meter roll-on/roll-off (ro-ro) berth, one 25 meter ro-ro ramp and 37 hectares of paved container yard. The minimum draft available at berth-side is 13 meters.
Description of Company and Purpose of Project

The terminal is being operated under a 20-year concession, which was approved by the Panamanian Legislative Assembly and signed into law in December 1993. Subsequent legislation extends the term of the concession by an additional 20 years provided that MIT is compliant with the terms of the concession. In a project to be undertaken from 1999 to 2003, MIT plans to increase the capacity of the terminal to 900,000 moves p.a. (from a current capacity of 600,000 moves). The proposed project will enable the company to overcome near-term capacity constraints, meet demand projected within the next 5 years, maintain its competitive position in Panama, and free cash flow resources by extending debt maturity.
The project would complement the work of the World Bank Group in Panama by increasing the role of the private sector in the provision of transportation services.

Environmental Category and Issues

This is a category B project according to IFC’s environmental review procedure. The review of this project consisted of appraising technical and environmental information submitted by MIT and a site visit by IFC’s Technical and Environmental Department staff. The following potential environmental, safety and health impacts of the project were analyzed: contamination from past uses; vegetation protection and reforestation; stormwater management; dredging; oil/hazardous materials storage and handling; hazardous cargo management; solid and liquid waste management; sewage treatment; fire prevention and emergency response; employee health and safety and training programs; and EHS organization and management.
MIT has presented plans to address these issues and to demonstrate that the proposed project will comply with Panamanian laws and meet World Bank environmental, health and safety policies and guidelines. MIT has also committed to ensure adequate management of environmental, health and safety record keeping, monitoring and reporting activities.
IFC will monitor ongoing compliance with World Bank environmental, health and safety guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by MIT and by conducting periodic supervision.


The is from the InfoShop.

Host country location of environmental documents1. Offices of MIT in Panama City and Colon.
2. Library of Autoridad Nacional del Ambiente (ANAM) in Panama City and Colon.

Date original SPI sent to InfoShop
Date revised SPI sent to InfoShopAugust 23, 1999  
February 17, 2000
“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) 473-7711
facsimile: (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