Central Aguirre Portuaria - II

completed

The port started operations in 1988, mainly as a grain handling facility. Today, Puerto Aguirre is an inland river port facility with diversified terminals (grain port, general cargo, vegetable oil and diesel terminal). The port installations also have loading and unloading platforms for trucks and railcars, specialized piers (grains, vegetable oil, and fuel), warehouses, silos, weighing scales, etc. In general, CAPSA has modern and versatile installations for the efficient handling of loose general cargo, solid bulk commodities (grains, meals), bagged products, and liquids (vegetable oil and diesel fuel). Puerto Aguirre is the first port and grain terminal in Bolivia and facilitated the opening up a landlocked nation by providing an attractive outlet to the Atlantic Ocean through the Paraguay-Parana river system. IFC helped the company in its initial stages of development by providing financing for the initial expansion of the terminal and its facilities. As the first grain terminal in Bolivia, Puerto Aguirre served as a catalyst in the successful implementation of the World Bank''s "Eastern Lowlands" agricultural production development project and has since attracted other grain facilities to start operation in the area. The proposed project includes: (i) extension of the facilities of the free zone to allow more storage space; (ii) expansion of the bulk terminal for handling soy products and general cargo (pro rata portion on investment in the joint venture with Cargill); and, (iii) expansion of the diesel fuel terminal by constructing two additional storage tanks and improvement of existing facilities (pro rata portion of investment in the joint venture with the Williams Companies). In addition, the existing debt of the company, including bridge loans for the expansion project (about US$700,000), will also be refinanced to lengthen the maturity of debt so that a higher portion of internally generated cash can be invested into the proposed capital expenditures. The project is expected to be completed by the end of 2003.IFC''s continued support for this project will encourage further competition in the area as well as lower the cost of transportation in the region by providing efficient cargo handling services. In addition, IFC''s investment in the venture will provide comfort to other multilateral banks to provide additional financing for the project and any future financing needs of the company. CAPSA is currently financing its expansion with short-term loans at a high interest rate. In this context, IFC will bring financing at a tenor and interest rate that are essential for this project but not available from other sources. IFC''s involvement in the proposed project will also assure that the development will not have adverse effects on the environment, surrounding urban areas, and access routes.Puerto Aguirre is a pioneering private sector initiative in the infrastructure development in Bolivia. It provided Bolivia with its first operational outlet to the sea via the Paraguay-Parana waterway, which triggered Bolivia''s growth of agro-products. In the last ten years, the country has evolved into the seventh largest producer of soybeans in the world. Puerto Aguirre''s expansion will serve to increase growing trade by providing Bolivian importers and exporters with better access to foreign markets at reduced costs. The development of the port and the free zone has increased agricultural and trading activity in the region and has created more job opportunities and improved the economic well being of the people in this region. This improvement is expected to continue and the growing agriculture and trade is likely to increase employment opportunities in this relatively poor region of Bolivia. Furthermore, the expansion of the free zone will help the facility become an additional tourist attraction for the growing number of Brazilian tourists that visit the ecological reserve of Pantanal.