IDB Invest Supports the Expansion of Kuldipsingh Port in Suriname
IDB Invest closed a corporate loan for up to US$14.5 million to Kuldipsingh Port (KPF), owner and operator of the main privately-owned cargo port in Suriname, to fund the cost of civil and construction works for the expansion of the port.
The project is expected to promote significant investment and support Suriname’s growth prospects in the coming years. The transaction will support the expansion and modernization of KPF’s facilities with the update of aging port infrastructure and increasing capacity in the Paramaribo area, where most of the international trade-related traffic takes place.
The purpose of the loan is mainly to expand the wharf and jetty, and the purchase of three parcels of adjacent land to KPF’s existing property. This will increase KPF’s capacity to handle general and breakbulk cargo and to service more vessels simultaneously. As a result, traffic is expected to increase 75% by 2030 to 480,000 tons, from around 275,000 tons handled in 2020.
The remainder of the expansion project being financed by the company is the construction of an additional warehouse and office. They will also purchase additional equipment, including cranes, trucks and other lifting equipment.
This transaction is aligned with IDB Invest’s efforts to support Suriname to improve diversification in the real sector of the economy by providing private sector companies with improved port facilities, which will be needed to handle increased cargo to and from the country.
IDB Invest will provide technical assistance to help KPF in the creation of an Environmental and Social Management System to make improvements in their environmental, health and safety, labor and other social practices and implement its Corporate Governance Action Plan.
This deal is expected to contribute to three United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Partnership for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank 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 $16.33 billion in assets under management and 394 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 Kuldipsingh Port
Kuldipsingh Port Facility N.V. (KPF) is a privately owned multi-purpose port in Suriname that handles mainly breakbulk cargo, consisting of construction equipment, manufacturing materials and lumber, among other items. KPF is owned by the Kuldipsingh Group, a Surinamese conglomerate operating a diverse range of businesses, including civil engineering and construction, transport and rental of heavy equipment, production of ready-mix concrete and prestressed concrete components, as well as the operation of various retail stores selling products used in the building and construction sectors, among others.