Washington, D.C., January 21, 2004. –
The International Finance Corporation (IFC), the private sector arm of
the World Bank Group, will provide $66 million to Aguas Nuevo Sur, Maule,
S.A. (ANSM), the private-sector concessionaire for water and sanitation
services in the Maule region in Chile, to carry out its 2002-2007 capital
expenditure plan with a total estimated cost of $83.8 million. ANSM
is a wholly-owned subsidiary of RWE Thames Water plc, the world's third
largest water company.
ANSM’s capital expenditure program will primarily consist of the construction
of wastewater treatment facilities, the expansion of its sewerage network,
and the implementation of operation and maintenance programs for ANSM’s
existing networks. The planned capital expenditure program will result
in water, wastewater and wastewater treatment coverage of nearly 100% by
the year 2007.
IFC's investment consists of a $33 million A loan for IFC's own account
and a $33 million syndicated B loan for the account of three international
financial institutions, ABN AMRO Bank NV, BBVA S.A. and HSBC Bank plc.
This is IFC’s first investment in Chile’s water and sanitation
Francisco Tourreilles, Director of IFC's Infrastructure Department, said,
"IFC’s financing of ANSM capitalizes on its global experience in
financing water and sanitation concessions. With the implementation
of its planned capital expenditure program, ANSM will be one of the few
water and sanitation concessions in emerging markets to achieve close to
100% water, wastewater and wastewater treatment coverage in its concession
area by the year 2007."
Bernard Pasquier, Director of IFC's Latin America and Caribbean Department,
noted, "This investment in Chile’s water and sanitation sector demonstrates
IFC’s strategy of continued support for private sector participation in
infrastructure development in Latin America at a time when many international
sponsors are decreasing their exposure to emerging markets.”
Eduardo Verdugo, Managing Director of ANSM, expressed satisfaction at the
loan agreement with IFC: "The long-term maturity of the IFC financing,
appropriate for a water and sanitation utility like ANSM, will enable us
to implement our capital expenditure program and focus on managing ANSM’s
operations without worrying about refinancing risk from shorter-term financing
IFC’s mission (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people's lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $37 billion
of its own funds and arranged $22 billion in syndications for 2,990 companies
in 140 developing countries. IFC's committed portfolio at the end of FY03
was $16.8 billion with an additional $6.6 billion held for participants
in loan syndications.