BID Invest and BBVA to finance the expansion of the Port of Montevideo
The two institutions will provide finance to boost the country's foreign trade through an expansion of the facilities at Uruguay's premier port. The total outlay comes to $340 million.
For this new project, BID Invest will provide $103 million to Terminal Cuenca del Plata S.A. (TCP). In addition, a further $46 million will be provided by BBVA. The proceeds will be used to design, build and operate the extension of the Port of Montevideo. The BID Invest loan will be coupled with a facility granted to commercial banks by Crecendo, Belgium's export credit agency, for a total approaching $340 million.
The project showcases BID Invest's commitment to support the development of port infrastructure to boost the logistical competitiveness of imports and exports of the countries in the region. The expansion and increased competitiveness of TCP will also benefit Uruguay's neighboring countries and foster regional integration.
"For BBVA, this deal marks a new milestone in our commitment to support Uruguay in its local and international growth," said Alberto Charro, the bank's CEO in Uruguay. He also stressed the importance of the synergy between multilateral organizations, in this case BID Invest, and international private-sector banks to promote investment and development.
New dock and container yard
The expansion project, which involves an estimated capital investment of more than $500 million, envisages the construction of a second wharf, designed to receive ships with a deeper draft than the current one, and a container yard, which will more than double the current international cargo volume of the country's leading port. The port extension will also have a direct impact on the growth of the Uruguayan economy, boosting competitiveness in foreign trade, generating quality employment and positioning Uruguay as a regional player in logistics.
TCP is also committed to an ambitious environmental and social action plan. This includes improvements in the management of environmental, social, labor, and occupational health and safety risks to optimize efficiency in the use of resources and prevent pollution.
The transaction will support several UN Sustainable Development Goals (SDGs): Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13), Partnerships for Achieving the Goals (SDG 17), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8).