IIC Loan of up to US$6.5 Million to Orofrán S.A. Supports The Transportation And Warehousing Sector in Uruguay
Washington, D.C. — On November 15, 2011, the Inter-American Investment Corporation (IIC) approved a US$6.5 million loan to Orofrán S.A. in Uruguay.
Santiago Cat, the IIC investment officer in charge of the operation, explained: "These funds will be used for the construction and procurement of four riverine barges, with a capacity of 5,500 metric tons each, and two tugboats for the barges. The operation is expected to have a positive impact on private sector development through its development of economic linkages with the export sector and its suppliers, thus generating jobs and foreign exchange revenues in the country."
Orofrán will provide riverine log transport services for the Montes del Plata (MdP) project from Orofrán's M'Bopicua logistics terminal, in Soriano Department, to the port of Punta Pereira, in Colonia Department, some 150 kilometers south via the Uruguay River, under an exclusive five-year transport contract renewable for two additional years.
The Montes del Plata project involves the construction of a cellulose pulp mill for processing eucalyptus from commercial tree farms. It encompasses the construction and operation of a cellulose mill producing on the order of 1.3 million metric tons of cellulose per year; a 160-megawatt biomass power generation facility; a river port terminal; barge terminals with wood storage yards; and a wood chipping plant. The cellulose mill will use elemental chlorine free (ECF) technology. The industrial facilities will be constructed in a free trade zone in Punta Pereira, some 190 kilometers west of Montevideo. Montes del Plata is the largest foreign investment in the history of Uruguay, for an aggregate US$2.3 billion approximately.
About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved 49 operations, channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, visit www.iic.org
Contact: Santiago Cat
Telephone: + (598 2) 915-3696