Company name

Suministradora de Buses K Cuatro SPA

Project number

13434-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Chile

Sector

Transport

Status

Proposed

Disclosed date

05/20/2022

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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07/19/2022

Approval date

07/19/2022

Signed date

N/A

Sponsoring entity

N/A

Team leader

Camargo Tamara, Mario

Investment type

Syndicated amount

N/A

Financing amount

USD $ 120,000,000

Currency

CLP

Project scope and objective

The project consists of the financing of the purchase, supply, and maintenance of 992 electric buses (or “E-buses”) by Suministradora de Buses K Cuatro SpA (the “SPV” or the “Company”) for use in the Red Metropolitana de Movilidad (the “RED”), Santiago’s Public transport system (the “Project”). The E-buses will operate under a 14-year bus supply contract awarded as part of the ongoing fleet renewal and expansion tender carried out by the Ministry of Transport and Telecommunications of Chile (the “MTT”).

The total Project cost is estimated at US$396 million (excluding VAT), which will be financed through a long-term structure composed of: (a) an IDB Invest senior loan for an aggregate amount of up to US$120 million and (b) parallel senior loans of up to US$183 million, which are expected to be Unidades de Fomento (“UF”)-linked loans. The rest of the Project’s costs will be funded through equity and subordinated debt contributions from the Sponsors.

The Company is owned by Inversiones Kaufmann S.A., a subsidiary of Grupo Kaufmann, and Enel X Chile, a subsidiary of Enel Chile S.A. Each currently own 50% of the Company.

This Project represents a relevant milestone in Chile’s Public transport system, since the country will have the largest E-buses urban fleet in the world outside of China.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

KAUFMANN RED ELECTRIC BUSES - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)

248.0 Kb

KAUFMANN RED ELECTRIC BUSES - ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)

88.3 Kb

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

CRISTIÁN CONTRERAS F.

POSITION

Gerente Electromovilidad y Nuevas Energias

PHONE NUMBER

227202602

EMAIL

rcontreras@kaufmann.cl

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices

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