IIC Loan To Enhance Operating Efficiency Along Paraguayan Waterway
06/19/2006Washington, D.C. - On June 20, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$3 million to Bowfluvial S.A. de Navegación, a Paraguayan transportation and warehousing company whose core business is providing river freight services along the Paraguay-Paraná Waterway, which runs 3,442 km from the Puerto Caceres area in Brazil to the Port of Nueva Palmira in Uruguay. IIC's financing will enable the company, for the first time, to obtain a loan with a term greater than five years, substantially improving its financial structure. The operation consists of modifying and repairing approximately fifteen barges, bringing their cargo capacity from 1,500 tons to 2,500 tons and thus increasing overall cargo capacity by up to 15,000 tons. Widening the barges will give them better buoyancy and, therefore, improve their ability to navigate shallow waters during droughts; this is a competitive advantage. The enhanced operating efficiency will reduce delivery times for Paraguayan, Bolivian, Brazilian and Argentine agricultural and agribusiness exporters and will make it possible to ship larger volumes of agricultural products to overseas ports.
The Inter-American Investment Corporation, a multilateral financial institution that is part of the IDB Group, provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, visit its Web site at www.iic.int.
Contact: John Beckham/Hernando Lesme
Telephone: (202) 623-3984