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Scotiabank has closed a project financing facility of US$195mn for the construction of a new container terminal in the Caucedo peninsula, 25km east of

  • Santo Domingo, in the Dominican Republic. The 12-year, non-recourse loan, was arranged by Toronto-based Scotiabank and includes the participation of the International Finance Corporation (IFC), Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), and a guarantee by Coface. The deal is being further syndicated among a small club of commercial banks. A 100%-PRI cover was secured early in the transaction for the commercial bank portion.

    The US$280mn project is 100%-privately owned and is a 50/50 joint venture in Caucedo Investments, Inc, by CSXWT and prominent Dominican partners (CDC). CSX World Terminals is anticipating that a majority of the container traffic will migrate from the existing Dominican river port of Rio Haina to their new deep-water container facility in Caucedo. In addition, it is expected that the adjacent free trade zone and the growing need for an alternative Caribbean trans-shipment hub will attract considerable incremental container activity for the DomRep.

    Construction of the terminal started in May 2002 and is projected to be completed by the first quarter of 2004. The new terminal facility is designed to have a 600-metre berth (656 yards) and will be dredged to 14 metres (46 feet) to handle the new generation of post-Panamax vessels. A breakwater will protect the 50-hectare (123.5 acres) container terminal. Five gantry shore cranes and ten rubber tired gantry cranes have already been ordered. These cranes will more than double the container-handling equipment capacity of the entire country.