| Project Detail |
MIGA has issued a guarantee in connection with a Non-Honoring of Sovereign Financial Obligations by a State-Owned Enterprise (NHSOE). This guarantee pertains to a US dollar debt financing structure of up to US$ 128 million with a tenor of up to 17 years.
The MIGA-guaranteed loan is currently being utilized by FDN to provide senior debt financing to Sociedad Portuaria Puerto Bahia Colombia de Urabá S.A. for the construction, development, and operation of Puerto de Antioquia. This project involves the establishment of a greenfield multipurpose private concession port facility located in the Gulf of Urabá, with a total investment of approximately US$ 650 million.
Environmental Categorization:
The project is a Category A under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
Development Impact:
Upon completion, the Project is expected to derive in (i) time and cost savings for exporters/importers in the region, with proper infrastructure the Port will become the closest access to the Atlantic Ocean to an area extending from Bogota to the “Eje Cafetero”, representing 64% to70% of the national GDP; (ii) increase economic dynamism, particularly through expanding agricultural production as well as incentivizing complimentary port services such as storage, warehouses, transportation companies; (iii) create employment opportunities direct and indirectly during the construction (1,200) and operation phase (750); and (iv) support government tax revenue.
In addition, the Port will be located near the city of Turbo, on the Gulf of Urabá, in the northern part of the Department of Antioquia, the region responsible for 75% of Colombia’s banana production. This region has been deeply affected by Colombia’s armed conflict and has been designated as a Zone Most Affected by Conflict (ZOMAC) by the government. However, in the past 5 years the security situation in the region has significantly improved. Nevertheless, poverty in Urabá remains high at 53% with an unemployment rate of 28%. By providing economic alternatives to the people in the region, the Project will be supporting the countrys effort to build and prolong stability while directly benefiting historically marginalized groups.
The Project total investment represents about 13% of the port infrastructure investment gap in Colombia, as estimated by the Global Infrastructure Hub, and it is expected to support the development and modernization of the sector.
The proposed Project is consistent with the most recent World Bank Group (WBG) Country Partnership Framework (CPF) FY2016-2021 for Colombia, which was updated through the Performance and Learning Review (PLR) of April 23, 2019. The Project is well aligned with the CPF’s third pillar objective of supporting improved business environments and innovation to boost productivity. In addtion, the Project also aligns with the GoC’s 2018-2022 National Development Plan,“Pacto por Colombia – Pacto por la Equidad”, in its third cross cutting strategic area of enhancing transport and logistics to promote competitiveness and regional integration. |
