Kingston Freeport Terminal Limited

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In April 2015, the Terminal Link, a partnership of the French container company CMA CGM (51%) and the Chinese company China Merchants Holdings (49%) was awarded the contract to expand, rehabilitate and operate the Kingston Container Terminal (KCT), located at Kingston, Jamaica. Two other bidders presented offers: Singapore’s PSA International and DP World. The bidding criteria was not available. The special purpose company Kingston Freeport Terminal Limited was established to manage the project. The 30-year concession contract was signed in April 2015. Under the agreement, the sponsors committed to make an upfront payment equivalent to the value of the equipment at the Terminal, in addition to a fixed annual payment paid quarterly in advance representing a lease payment for the facility and a variable fee payable monthly in advance The investment was estimated at US$ 452 million. Financial closure was achieved in June 2016, when the sponsor was granted US$ 265 million in loans from Inter-American Development Bank - IIC, Agence Francaise de Développement – Proparco, DEG and FMO, and private funders (CIBC First Caribbean, CIFI, Cordiant). The financing included a US$ 94 million A-loan from the IIC, a B-loan of US$111 million from Cordiant, FMO, CIBC First Caribbean and CIFI, and co-loans from Proparco and DEG for US$30 million each. The remaining capital expenditures were set to be financed with equity. The terminal was expected to reach a capacity of 3.2 million TEU/year.