Download Esteban Diez, Transport Principal Specialist, Inter

Infrastructure and Port
Development in Central America:
Role of the IDB
Esteban Diez Roux
London
March 5th 2014
http://www.iadb.org
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Infrastructure and Port Development in Central America: Role of the IDB
Table of Contents
General Vision of the IDB
Port Sector in Central America
Procurement
Infrastructure and Port Development in Central America: Role of the IDB
Main source of financing for the sustainable development of Latin
America and the Caribbean
 Founded in 1959, the IDB is the oldest and largest regional
development bank.
 48 members: 26 borrowing members and 22 non-borrowing members.
 From 1961 to the end of 2013, the IDB has approved US$188.62 billion
in loans and guarantees.
 The IDB obtains its own financial resources from its 48 member
countries, borrowings on the financial markets, and trust funds that it
administers, and through cofinancing ventures.
 The IDB’s debt rating is AAA, the highest available.
Infrastructure and Port Development in Central America: Role of the IDB
Modalities of Bank Support
 Public Sector lending with Sovereign Guarantee
 Investment Loans
 Policy Based Loans
 Emergency Loans
 Non-reimbursable support:
 Technical Cooperation: technical studies & project preparation:
 InfraFund; FIRII Fund; AquaFund; SECCI Funding
 Donor Trust Funds (e.g. Korea Technology & Innovation | Korea Poverty Reduction)
 ESW: Economic Sector Work
 Non-Sovereign Guarantee lending
 Private Sector Loans
 Public sub-national entities qualified for NSG
 Inter-American Investment Corporation
 Multilateral Investment Fund
Infrastructure and Port Development in Central America: Role of the IDB
2013 US$14.0 billion in approved loans and guarantees.
Loans by region, 2013
(US$14.0 billion)
CID
$4.72B
34%
Loans by topic. 1961-2012
CCB
$0.37 B
3%
Reform and
Modernization of
State
16%
Social Development
34%
Infrastructure and
Competitiveness
50%
CAN
$2.15 B
15%
CSC
$6.16B
44%
Infrastructure and Port Development in Central America: Role of the IDB
Transport Operations
Approvals in Transport 2009-2013
(US$ million)
 Typical Projects
•
•
•
Road expansion/rehabilitation
Public transportation (BRTs, Subways)
Ports, airports
 Typical Procurement Aspects
•
•
•
Civil works (infrastructure construction,
rehabilitation, tunneling, bridges, ports )
Buses, rolling stock, equipment
Technical consulting services
 Highlights of 2013 Transport Lending in CA
•
•
•
•
Nicaragua: Support for Transport Sector III (US$ 91.5 M)
Costa Rica: Transport Infrastructure Program (US$ 450 M)
El Salvador: Mesoamerican Pacific Corridor Improvement Program (US$ 115 M)
Honduras: PPP Atlantic Corridor Supplementary Financing Program (US$ 17.2 M)
Infrastructure and Port Development in Central America: Role of the IDB
Table of Contents
General Vision of the IDB
Port Sector in Central America
Procurement
Infrastructure and Port Development in Central America: Role of the IDB
Central America and Dominican Republic
 8 Countries
– 7 on main land
 18 ports (in red below)
 Total Population: 52.8 million
 Area: 570,546 sq km
 Most populous country: Guatemala
(14 million)
 Least populous: Belize (327,719)
 Largest country: Nicaragua
 Smallest country: El Salvador
Ports in the Study
Infrastructure and Port Development in Central America: Role of the IDB
Current Caribbean Port System
 Two large transshipment hubs in
the DR and Panama
Actual liner services that visit two or more ports among those in the study
 2 of 11 Atlantic ports offer direct
service to Asia and 7 of 11 offer
direct service to Europe
 All Pacific ports must transship
through Panama to connect to
ports in the Atlantic and vice versa.
 Most trade goes to the US and
Europe
 Poor road infrastructure and
difficult geography raise appeal of
sea shipping
Infrastructure and Port Development in Central America: Role of the IDB
Connectivity network for ports in Study
Estimation of the weekly number of TEUs that needed to be moved by sea in 2010 between countries in this study
Infrastructure and Port Development in Central America: Role of the IDB
Most trade is with countries out of the region
Infrastructure and Port Development in Central America: Role of the IDB
Infrastructure Limitations
 Only four ports capable, based on berth depth, to receive Post-Panamax Vessels (two in Panama one in
El Salvador, and one in the DR)
 Only four ports can receive Panamax vessels (two in Costa Rica, one in Guatemala and one in Honduras.
 Five ports don’t have operational cranes, including one of the Post Panamax ports (Rely on geared
ships)
Infrastructure and Port Development in Central America: Role of the IDB
Impact of the canal
 Little impact on ports in the study
 They need to improve port efficiency, integration with customs and other
services and modernize their infrastructure
 Might need to accommodate bigger feeder vessels
 Better road connectivity
 There are plans for transshipment ports in Costa Rica, El Salvador, Guatemala
and Honduras
 There will potentially be a mega hub on the Atlantic side
– Likely at Colon in Panama
Infrastructure and Port Development in Central America: Role of the IDB
Opportunities for Investment
 La Union – El Salvador
– Awaiting a concession
 Puerto Santo Tomas de Castilla – Guatemala
– Evaluating the development of strategic projects such as the improvement of the access route
for the port (access directly to the main road bypassing the town), moving the cruise terminal
outside the current cargo areas, and the expansion of the current container and grains terminal.
 Puerto Limon-Moin
– An investment of USD 80 million is planned for the modernization of the current passenger
infrastructure and the development of new areas for touristic purposes once new container
terminal is complete.
 Puerto Acaluja – El Salvador
– Planning to extend C berth by 90 meters, increase some berths’ depth to 15 meters, develop a
new container berth directly connected to the yard, and acquire a new Post Panamax crane.
Infrastructure and Port Development in Central America: Role of the IDB
Opportunities for Investment
 Puerto Cortes – Honduras
– Planning to have a new container terminal to be given as a concession to a private operator for
its development and management.
 Puerto Castillo – Honduras
– Planning to expand the current terminal by adding 100 m of berth for more flexible dockage
operations. Several investors have showed interest in the port for activities such as ethanol
production, exporting of iron scrap, a refinery, and a tourist terminal.
 Puerto Manzanillo – Panama
– Planning a USD 300 million investment to build 3 new berths and add 38 ha of additional
container storage in order to reach a total annual capacity of 4 million TEUs and enabling the
port to handle new-panamax vessels.
 PSA Panama International Terminal – Panama
– Planning 800 m of additional berth, expansion of the container yard and 10 new post-panamax
STS cranes. This expansion would provide 2 additional new post-panamax berths and increase
the port’s capacity to 2 million TEUs.
Infrastructure and Port Development in Central America: Role of the IDB
Table of Contents
General Vision of the IDB
Port Sector in Central America
Procurement
Infrastructure and Port Development in Central America: Role of the IDB
Investment loans (SG): execution
 Standard project procurement:
 Civil works
 Equipment
 Consulting services: technical & institutional strengthening
 Competitive bidding
 Turnkey vs. split contracts/works
Contact Executing Agencies (Government Ministries) for procurement
requirements, bidding documents, contract information, procedures &
payments
Actively engage local embassy to identify opportunities
Upstream pipeline projects
Infrastructure and Port Development in Central America: Role of the IDB
Business opportunities
IDB (preparation) ≈ 5%
 Technical Cooperations (TC), pre-investment:
 Contracts with IDB, mainly consulting services, support of project
preparation (small/moderate value and short term), usually include
feasibility studies, due diligence, etc.
In-country (execution) ≈ 95%
 Loans and or TCs
 Competitive biding processes with IDB borrowing country as the client
(larger value, longer term, formal competitive bids, e.g., goods, services, civil
works, equipment, etc.)
 Subcontracting with other firms (as partner, as a joint venture, as a supplier)
Where to start (companies)?
 Contact Executing Agencies (Government Ministries) for procurement
requirements, bidding documents, contract information, procedures & payments
 Actively engage local embassy to identify opportunities
Infrastructure and Port Development in Central America: Role of the IDB
Inter-American Development Bank
www.iadb.org
Esteban Diez Roux
[email protected]
Transport Division
Infrastructure and Environment Department
Infrastructure and Port Development in Central America: Role of the IDB