Vietnamese Port among Emerging-Market Infrastructure Projects to Benefit from Crisis Facility
Phone: 90 212 385 3075
In Washington, D.C.:
Phone: (202) 473 0605
Istanbul, Turkey, October 5, 2009_IFC, a member of the World Bank Group, today announced that the Infrastructure Crisis Facility has committed a financing package to help SP-SSA International Container Services Joint Venture Company (SSIT), a joint venture between Vinalines, Saigon Port and Carrix, Inc. to develop a modern, efficient deepwater container-handling facility in Ho Chi Minh City, Vietnam.
Approval of the project marks the operational launch of the Infrastructure Crisis Facility Debt Pool. The Infrastructure Crisis Facility was set up to direct funding to infrastructure projects that are privately funded or public-private partnerships. To date, it has received pledges from the German institutions KfW Entwicklungsbank and DEG _ Deutsche Investitions- und Entwicklungsgesellschaft mbH, the French Investment and Promotions Company for Economic Cooperation (Proparco), the European Investment Bank, and IFC.
Ahead of the 2009 Annual Meetings of the World Bank Group and International Monetary Fund in Istanbul, Erich Stather, the German Under Secretary of the Federal Ministry for Economic Cooperation and Development, and Lars Thunell, IFC Executive Vice President and CEO, affirmed their support for private infrastructure financing in emerging-market countries and signed documents related to Germany_s contributions to the debt pool. DEG, Proparco, and EIB also signed documents with IFC.
_Infrastructure is critical for stimulating growth and job creation in developing countries,_ said Thunell. _As funding from the Infrastructure Crisis Facility becomes available for eligible projects, it is our hope that initiatives like the port in Vietnam will play an important role in helping developing countries overcome financial distress._
DEG, the German development finance institution, has earmarked $400 million to cofinance programs under the Infrastructure Crisis Facility, in addition to _500 million set aside previously by KfW for the debt pool. Proparco pledged _200 million to the Infrastructure Crisis Facility Debt Pool for projects in Africa, after earlier committing _800 million in cofinancing. Today, the EIB committed _1 billion in cofinancing to the Infrastructure Crisis Facility, bringing the total pledged to more than $4 billion since this facility launched in April.
The Infrastructure Crisis Facility Debt Pool, a subsidiary of the Private Infrastructure Development Group and KFW, began operation following the appointment of its board members and selection of a potential manager. Cordiant, a Canadian-based emerging-market investor is expected to manage the fund under the direction of the debt pool_s Board. Several projects are under early review and expected to receive Board approval in the coming weeks.
By targeting infrastructure projects in emerging market countries, the ICF will provide crucial support to a critical component of developing countries_ development agenda for economic growth and the delivery of basic services. This money will be essential for ensuring that infrastructure projects that would have been postponed or canceled due to a financing gap continue on the path to development.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.