IDB Invest Supports Grupo Ortiz to Expand Access to Enhanced Water Supply in Panama
IDB Invest has provided a facility of $50 million to Consorcio Anillo Hidraulico, a joint venture between subsidiaries of Ortiz Construcciones y Proyectos, S.A. (“Grupo Ortiz”), to fund the execution of civil works to improve Panama City’s tap water system, including the expansion and rehabilitation of the North Panama aqueduct under a construction contract with the National Council for Sustainable Development (CONADES) of Panama.
The deal supports expanding access to water supply by supporting the development of drinking water infrastructure. This expansion is expected to provide new and upgraded connections to around 40.000 households in 2040. The total investment can be associated with pipeline upgrades to reduce water leakages, contributing to a more efficient management of the resource.
The transaction will support Grupo Ortiz to finalize the construction of the project by improving its liquidity position and helping to manage its working capital needs in line with the construction demands of the project. This will be done through a facility for the purchase of credit rights derived from the construction contract in execution by Grupo Ortiz.
This project is aligned with IDB Invest’s objective to improve the delivery of basic services including water and sanitation services, specifically to increasing the percentage households with access to drinking water.
This deal is expected to contribute to three United Nations Sustainable Development Goals (SDGs): Clean Water and Sanitation (SDG 6), Decent Work and Economic Growth (SDG 8), and Industry, Innovation and Infrastructure (SDG 9).
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 Grupo Ortiz
Grupo Ortiz is one of the main Spanish companies in the concessions, energy and infrastructure sectors. It has a global presence and since 2010 executes, operates and bids for concessions of basic services (road, healthcare and energy) with multilateral finance in emerging countries. It is also involved in the execution of energy infrastructure investment for a number of clients across the world, as well as transport and healthcare infrastructures, above all in Colombia. It now has a global presence, with projects in 13 countries and a stable presence in Spain, Colombia, United States, Mexico, Panama and Japan.