The Inter-American Development Bank last month finalized a $20 million loan to Plaza Logistica SRL for construction of two logistics parks outside Buenos Aires, Argentina, according to the multilateral bank's Website
It is the first time the IDB has ever approved a private sector loan to finance a logistics project in Latin American and the Caribbean.
The logistics parks in Escobar and Pilar will have a combined 85,000 square meters of warehouse space for distribution of processed foods, beverages, cleaning products and other consumer goods. The parks are expected to spur development of local transportation infrastructure and improve supply chain integration among Brazil, Paraguay and Uruguay, Argentina's partners in the Mercusor trading bloc.
The total investment required for phase two of the Plaza Logistica project is $59 million. The U.S. Overseas Private Investment Corp. is providing $10 million in financing and the $29 million balance is being provided by shareholders, said Benjamin Griswold, managing partner of Blue Water Worldwide LLC.
Blue Water, a New York holding company, is the controlling shareholder in in Plaza Logistica. Blue Water also owns companies involved in the mining and electric utility sectors.
OPIC provided $10 million in financing a couple years ago for the first phase of the project, Griswold said.
The IDB said the project is expected to create about 500 permanent and 380 temporary jobs.
Edson Mori, a senior investment officer, said IDB has recently started to pursue more investment opportunities in the logistics arena. — Eric Kulisch