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Monday, January 18, 2010
Today's News Headlines
* IDB concludes public consultation process for capital increase - Regional
* Minister inaugurates US$8mn overpass on concessioned highway - Chile
* Hatch purchases local infrastructure consultancy firm - Chile
* Macquarie launches infrastructure fund - Mexico
* SEP proposes US$383mn port budget to prepare for 2014 World Cup - Brazil
* MEM cashes Doe Run's US$14mn guarantee - Peru
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* IDB concludes public consultation process for capital increase - Regional
The Inter-American Development Bank (IDB) has completed what it described as a far-reaching public consultation related to its proposed capital increase, a process that began on September 8 last year and ended January 9.
Last March the board of governors - IDB's top policymaking body, where all member countries are represented - called for an assessment of the need to add resources to the bank's ordinary capital and the fund for special operations, its source for concessional lending for the region's poorest countries. The capital increase is expected to come close to US$175bn.
About 500 civil society organizations in the Americas and Europe participated in the consultation either through meetings with IDB management or by submitting their recommendations through the bank's public consultation page.
IDB said that during the period, management met with organizations in the US, Europe and Latin America and the Caribbean, and conducted face-to-face meetings in seven countries.
Civil society organizations provided inputs about the bank's future challenges, strategic priorities and how IDB operates.
IDB said that suggestions ranged from increased support for the private sector to greater emphasis on urban development, community participation in projects and an expansion of poverty alleviation programs, and that during the meetings, participants unanimously supported the public consultation process.
Vincent McElhinny, project manager at Building Informed Civic Engagement for Conservation in the Andes-Amazon (BICECA) told BNamericas that IDB is the only multilateral development bank to attempt a consultation on its global capital increase.
"They deserve credit. We've also pointed out a number of crucial flaws in the process. The main one is the lack of adequate documentation to know whether any input we provided will actually be considered in the final GCI proposal. Still, the consultation process is an important commitment by the IDB," McElhinny said.
A final report on the results of the consultation process will be provided to the IDB governors. Governors are expected to discuss a proposal for the ninth capital increase of the bank during IDB's annual meeting in Cancún, Mexico at the end of March.
By Business News Americas staff reporters
* Minister inaugurates US$8mn overpass on concessioned highway - Chile
Chile's public works (MOP) minister Sergio Bitar inaugurated a 3.7bn-peso (US$7.6mn) overpass on the concessioned Autopista Central highway, the ministry reported in a release.
The cost was covered by the highway concessionaire, a consortium comprised of Spanish firm Abertis and the local branch of Swedish company Skanska, a MOP official told BNamericas.
The initiative, which is part of Chile's concessioned highway safety program, involved the construction of an overpass and a two rainwater drainage tanks with the capacity to hold a total of 30,000m3 of water. The tanks will prevent flooding in the Las Acacias residential area.
"This project will solve many problems, and we are very happy because it will translate into better living conditions in the San Bernardo district, as well as in others," Bitar said.
The overpass will also reduce accidents in the area, the minister added.
Additional road connections and improved signaling were included in the project.
The construction of the 39.5km Autopista Central highway began in 2001 and the highway was inaugurated in 2004.
By Eva Medalla
Business News Americas
* Hatch purchases local infrastructure consultancy firm - Chile
The local branch of Canada-based international consulting firm Hatch recently purchased Chilean consultancy firm REG Estudios de Ingeniería, the former company reported in a release.
The purchase was completed on January 6 and will boost Hatch's potential to develop infrastructure projects.
REG has over 35 years of experience in the development of public and private initiatives that include water projects; dams and reservoirs; tunnels; waste disposal systems; transport projects; high density fluid management; water and mining networks; environmental initiatives; mines; and roads.
Last year, Hatch created its Latin America infrastructure division comprising four main segments: transport, water, services and joint ventures.
By Business News Americas staff reporters
* Macquarie launches infrastructure fund - Mexico
Australian investment bank Macquarie Group (ASX: MQG, Pink Sheets: MQBKY) has begun an infrastructure fund for Mexico with initial commitments worth 5.2bn pesos (US$410mn), supported by national infrastructure fund Fonadin and private pension funds (Afores).
The fund will target investments in areas including highway and rail infrastructure, airports and ports, as well as water and wastewater, Macquarie said in a release.
Macquarie has committed 750mn pesos for the fund, while Afores have agreed to invest 3.42bn pesos.
Meanwhile, Fonadin made an initial commitment to contribute some 1.04bn pesos, and will also act as a cornerstone investor for the fund, putting in up to 3bn pesos in total.
The outlay represents Fonadin's first direct investment in an infrastructure fund, and is consistent with the government's national infrastructure plan (PNI), which began in 2007.
The Macquarie fund is the first peso-denominated fund to focus solely on Mexican infrastructure projects, the company said.
By Business News Americas staff reporters
* SEP proposes US$383mn port budget to prepare for 2014 World Cup - Brazil
Brazil's special ports department (SEP) is proposing to invest 677mn reais (US$383mn) to improve port infrastructure in seven of the 2014 World Cup host cities, government news service Agência Brasil reported.
The objective is to prepare these cities to receive transatlantic passenger ships and the budget is currently awaiting presidential approval, the report said.
The idea is to start investments this year and finish works by 2012, according to SEP head Pedro Brito.
"We will launch tenders in 2010. Some projects will start this year but most will start in 2011," Brito said.
In addition to building new terminals, works involve renovating and expanding existing terminals, improving land access and overall port infrastructure such as the extension of wharves.
Investments will be made in the ports of Salvador (Bahia), Recife (Penambuco), Natal (Rio Grande do Norte), Fortaleza (Ceará), Manaus (Amazonas) and Rio de Janeiro. Work will also be carried out at Santos port (São Paulo), the report said.
PROJECTS
Close to 299mn reais will be spent to build three new piers at Rio de Janeiro port.
At the same time, a total of 114mn reais will be invested in Santos to improve wharfs and build 3.5km of access routes.
In Fortaleza, 93mn reais will be spent to build a passenger terminal and a multi-use ship docking area. Resources will also be spent on parking, paving and urbanization.
Manaus will receive 79.9mn reais to rehabilitate existing terminals, expand platforms as well as construct a 7Mm2 parking lot with a covered walkway leading to the terminal.
A total of 46.5mn reais will be used to expand the wharf at Natal, pave access roads and improve parking conditions.
In Salvador, improvements to the passenger terminal will cost 29.3mn reais. Works include paving and urbanization.
Finally, Recife will spend about 17mn reais to improve its warehouse 7. Paving and urbanization is also planned at the port.
Meanwhile, the country's growth acceleration plan (PAC) is financing a national dredging program costing a total of 1.6bn reais to be spent from 2008-10.
By Business News Americas staff reporters
* MEM cashes Doe Run's US$14mn guarantee - Peru
Peru's energy and mines ministry (MEM) has executed US-owned Doe Run Perú's US$14mn bank guarantee relating to environmental works at the La Oroya polymetallic smelter in Junín and will hold the money until the project is finished, MEM said in a statement.
Doe Run Perú has not renewed the guarantee, and MEM said its move to execute falls under the legal framework of an October 2009 supreme decree that set out the government's expectations for La Oroya following the passing of a law that extended the project deadline by 30 months.
Once the environmental works are complete, MEM will return the money, the statement said, adding that in 2009 it executed a different letter of guarantee for US$4mn for the same reasons.
The company has finished 52% of the PAMA environmental project, which involves construction of a sulfuric acid copper circuit. Further investment of US$160mn is needed, according to MEM.
The original agreement to clean up the decades-old, notoriously polluting smelter was laid out in the 1997 privatization deal between Doe Run and the Peruvian government.
By Business News Americas staff reporters
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In-deph interview
*
Citibank Peru corporate finance VP Alberto Carrera
Peru
http://www.bnamericas.com/interviews/privatization/Citibank_Peru_corporate_finance_VP_Alberto_Carrera-/170324197
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Main companies covered in today's news
* Hannover Rückversicherung AG
http://www.bnamericas.com/company-profile/en/Hannover_Ruckversicherung_AG-Hannover_Re/170324197
* Secretaria de Comunicaciones y Transportes
http://www.bnamericas.com/company-profile/en/Secretaria_de_Comunicaciones_y_Transportes-SCT_Mexico/170324197
* Comisión Federal de Electricidad
http://www.bnamericas.com/company-profile/en/Comision_Federal_de_Electricidad-CFE/170324197
* Empresas Municipales de Cali
http://www.bnamericas.com/company-profile/en/Empresas_Municipales_de_Cali-Emcali/170324197
* Swiss Reinsurance Company
http://www.bnamericas.com/company-profile/en/Swiss_Reinsurance_Company-Swiss_Re/170324197
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