Manta Port Concession

Cancelled

In November 2006, Hutchison Port Holdings signed a 30 year concession contract by the Manta Port Authority to build and operate a new container terminal at the Port of Manta, Ecuador. The Port of Manta is Ecuador’s only natural deep-sea port. At a depth of 30 meters, it is capable of handling the largest vessels. The project was intended to make Manta the principle port on the Pacific coast of South America and the major point of entry for goods coming from Asia with a capacity of 1.6million TEUs. Manta is located at the point in South America that is closest to Asia. The concession contract was granted through a competitive tender gave a 20% advantage to the first proposal. The original bid criteria was total investment in facilities. Hutchison Ports Holding Ltd. presented the first and only proposal of US $523mn, although the government extended the deadline from July 30 to August 18 in order to attract other bidders. The contract was awarded in early September 2006. Although the contract was signed in November 2006, Hutchison Port Holdings did not take possession of the port until January 31, 2007 due to minor disagreements with the port authority. The Ecuadorian government has agreed to finance US $55mn of the US $523mn investment commitment total. Hutchison Port Holdings formed the company Terminales Internacionales de Ecuador S.A. (TIDE) as the project company and operator. Hutchison Port Holdings Group is a subsidiary of the multinational conglomerate Hutchison Whampoa Limited (HWL). It was the first time the Ecuadorian government has allowed foreign interests to develop its ports, which it considered strategic assets. In February 2009 TIDE announced it was leaving the port and withdrawing from the concession. In July 2009, Hutchison Ports Holding reached an agreement with the port authority to transfer its shares in TIDE to the government in exchange for US$ 5 million. Hutchison Ports Holding committed to return tax breaks worth over US$ 1 million to the government, to deposit an additional US$ 2 million in TIDE's account, and to renounce all rights over the US$ 18 million that was invested in the port. The operations were finally handed over to the port authority in April 2010. Canceled in March 2010.