AG Concession

completed

Incorporated in November 2000, AGC has been established as a holding company that focuses on infrastructure businesses. Existing projects include five Brazilian toll road concessions and a minority stake in the country''s first partially-privatized state water company. The focus of AGC''s investment strategy will be in the privatization of state-owned water companies, private toll roads and other concession based infrastructure businesses in Brazil. IFC''s strategy in infrastructure development has been to assist Brazil in modernising its infrastructure by encouraging the participation of the private sector in the provision of infrastructure services. The investment would also be strongly in line with IFC’s strategy of supporting projects which demonstrate the viability of private investments in the newly opened and more difficult infrastructure sectors, such as water and sanitation, where local financial resources are limited and thus IFC can play an important role in structuring and mobilization. AGC, as other private water operators, is facing relatively short maturity in local financial markets and does not currently have reasonable access to long-term capital funds for its investments. IFC''s support could help develop local capacity to participate in the privatization of a public utility sector.