IDB Invest Signed Financing Deal for Colombia’s Puerto Antioquia
With the recent closing of financing for the construction of a port project in Urabá, IDB Invest contributes to strengthening the infrastructure and foreign trade of Colombia.
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, signed a $200 million financing deal for the construction, operation and maintenance of Puerto Antioquia, a new multipurpose port facility located in the Gulf of Urabá, department of Antioquia, in Colombia. The signing ceremony, in Turbo’s townhall, was attended by strategic allies and community leaders from Urabá, in addition to the virtual presence of representatives from the government, the IDB Group and sponsors of the port project.
The announcement follows a working meeting between the President of the Republic of Colombia, Iván Duque Márquez, and the President of the Inter-American Development Bank (IDB Group), Mauricio Claver-Carone, at the Colombian Embassy in Washington D.C.
Puerto Bahía Colombia de Urabá S.A. will be in charge of the development and operation of the port, which has a 30-year concession contract with the National Infrastructure Agency (ANI). Due to its geostrategic location and the construction of 4G roads, it will be the port terminal closest to the main production and consumption centers of the country, becoming a key infrastructure for strengthening Colombian foreign trade. Additionally, it will allow small and large farmers in Urabá to boost their competitiveness and expand their presence in international markets.
The implementation of the port project will generate more than 17,000 new indirect jobs in Urabá. The Puerto Antioquia team of professionals managed to secure the trust and social support necessary to establish agreements with local communities, aimed at generating social value for the port’s sustainability. Thus, commitments were made to hire local labor and for management strategies that promote the integral development of local residents.
The project has a total cost of $672 million. IDB Invest’s financial package consists of a $150 million loan of own funds and the mobilization of $50 million worth of funds under the administration of IDB Invest, which offers a long-term financing of 17 years, not available in the open market, necessary to ensure the financial sustainability of the project.
Additionally, the operation will have mezzanine financing from Global Infrastructure Partners and $193 million in loans from Colombian local banks. It also includes, among its sponsors, the international shipping company CMA CGM, the Colombian port development company Puertos, Inversiones y Obras (PIO SAS), the European construction company Eiffage and the banana companies Agrícola Santamaría, Banafrut, C.I. Unibán and C.I. Tropical.
Puerto Antioquia has an Environmental License, a Special Permanent Free Zone consideration and will consist of a marine platform with 1,340 meters of dock line and a depth of 16 and a half meters. It will be connected by a 3.8-kilometer viaduct with a 38-hectares land platform, within which it will offer the logistical and technological facilities necessary for the storage of general cargo, bulk, vehicles and refrigerated and dry containers.
IDB Invest has promoted the alignment of Puerto Antioquia with the highest international standards in socio-environmental matters, which also means that the project responds to the need to implement sustainable, safer and more efficient transport infrastructures, which contribute to improving global indicators, such as the Sustainable Development Goals.
This deal is expected to contribute to four of the Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible consumption and production (SDG 12) and Partnerships to achieve the goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Puerto Bahía Colombia de Urabá S.A.
Puerto Bahía Colombia de Urabá S.A., is a Public Limited Company, which has a Concession Contract with the ANI to build and operate a multipurpose terminal, with the capacity to store general cargo, bulk, vehicles and refrigerated and dry containers. It will handle an estimated volume of 7 million tons of cargo per year and, because of its strategic location in the southeast of Urabá, on the Colombian Caribbean coast, will reduce the distance between the port and the country's main production and consumption centers by more than 350 kilometers. Puerto Antioquia is expected to be built and in operation in the second half of 2024.