White & Case, Pérez Bustamante & Ponce, Clifford Chance and Flor & Hurtado Abogados advised on the transaction
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, provides a financing package of $377 million for the construction, operation and maintenance of the first phase of the Multipurpose Terminal of the Posorja Port, in Ecuador. The project is developed by DP World Posorja, a subsidiary created by the company DP World, the third largest container operator in the world in terms of capacity and productivity.
The new terminal, which in its first phase will have an estimated capacity of 800,000 TEU (twenty-foot equivalent units), will compensate for the expansion and load constraints of Guayaquil, Ecuador’s main port. The location of Posorja, closer to the area of ??free access to the sea, will decrease the average transit time and offer a deeper draft (16.5 meters). Once the new port is completed, vessels of up to 15,000 TEU can operate. The activity of this new infrastructure will generate, in addition, more than 480 permanent jobs.
IDB Invest’s financial package is divided into a loan of $147 million and the mobilization of resources from other investors of $233 million, of which $50 million comes from the China Co-financing Fund for the Americas. IDB Invest offers 15-year long-term financing, which is not available in Ecuador and is necessary to ensure the financial sustainability of the project.
The participation of IDB Invest has incorporated the adoption of environmental and social best practices in the execution of the project, as well as solutions for the reduction of greenhouse gases (GHG) in the port sector of Ecuador.
White & Case advised DP World and DP World Posorja with Jeannine Acevedo (Picture), Debashis Dey, Sean Goldstein, Lauran San Román Guijarro, Grétel Martínez, Raffaele Turco, Sankalp Labroo and Chris Bergan.
Pérez Bustamante & Ponce advised DP World and DP World Posorja with Juan Manuel Marchán, Carmen Simone Lasso, Nicolás Maldonado, Natalia Almeida-Oleas and Ricardo Pérez.
Clifford Chance advised IDB Invest, China Co-financing Fund for the Americas, DEG–Deutsche Investitions- und Entwicklungsgesellschaft mbH and Société de Promotion et de Participation Pour la Coopération Économique S.A. (PROPARCO) with Catherine McCarthy, Jessica Springsteen and Greg Jehle.
Flor & Hurtado advised IDB Invest, China Co-financing Fund for the Americas, DEG–Deutsche Investitions- und Entwicklungsgesellschaft mbH and Société de Promotion et de Participation Pour la Coopération Économique S.A. (PROPARCO) with Mario Flor, Agustín Hurtado Larrea, José Cisneros Pazmiño, Daisy Ramírez, Alejandra Soriano and Alejandro Pérez.
Involved fees earner: Juan Manuel Marchán-Maldonado – Pérez Bustamante & Ponce; Natalia Almeida-Oleas – Pérez Bustamante & Ponce; Ricardo Pérez Irarrázaval – Pérez Bustamante & Ponce; Carmen Simone Lasso – Pérez Bustamante & Ponce; Nicolás Maldonado Zambrano – Pérez Bustamante & Ponce; Jeannine Acevedo – White & Case; Debashis Dey – White & Case; Sean Goldstein – White & Case; Lauran San Roman Guijarro – White & Case; Grétel Martínez – White & Case; Raffaele Montenero Turco – White & Case; Sankalp Labroo – White & Case; Catherine McCarthy – Clifford Chance; Jessica Springsteen – Clifford Chance;