Andean Social Infrastructure I

In March, $5.3m was called from the Company by Andean Social Infrastructure I (the “Fund”), which is a private fund that invests in social infrastructure assets in the Andean region of South America, working in conjunction with local governments. To date, the fund has invested in two assets, a Uruguayan custodial facility and a low-sulphur oil refinery in Mexico, a key facility in the country’s path to meet their emissions target.

The cash drawn down in March by the Fund will be invested into the build and operation of a new port facility at Puerto Antioquia, on the Atlantic coast of Colombia. The build will include an offshore deck capable of handling super post-Panama Canal vessels (such as MSC Bettina, pictured, one of the largest container ships in the world), with a viaduct and 38 ha of modern inland terminal facilities. The port is a critical asset, improving access to sea for the 2nd largest regional economy in Colombia. There is already captive traffic from major shipping lines at the existing port, despite the lack of modern facilities, with 35% of the port’s total capacity having signed commitments already. Significant additional traffic is expected to be diverted to the new port as it will create a shorter and cheaper overland route to the production centres of Medellin and Bogota (resulting in an estimated decrease of 70m km/year of truck travel and a decrease of 21.6m kg/yr of resulting CO2 emissions). The port is expected to have a range of knock-on social benefits, but in the first instance will directly create 1,000 new jobs in the Uraba region, where unemployment is at 25% and 50% of inhabitants live below the poverty line. The build is expected to take three years, and the concession on tariffs from port users obtained by the Fund has a term of 30 years.