Investment

CAPEX: 46 MM USD

OPEX: 107 MM USD

TOTAL: 153 MM USD

Financial Indicators

IRR: 47%

Recovery Time: 11 years


Management Model

Public tender concession agreement.

  • Time of construction: 2 years
  • Time of operation: 23 years
  • Total time of concession: 25 years

Payment procedure

  • The investment will be recuperated by the private entity through direct charged of fees under the offered services
    Platform entrance fee:
    – USD 5 (cargo transportation)
    – USD 1 (light vehicles)

Fees for certain services offered in the platform:

Type of service Fee Unity Value USD
Truck maintenance Rent per month USD/m2 3
Vulcanization Rent per month USD/m2 3
Parking Rent per month USD/m2 3
Storage, weigh in and distribution Storage fee USD/ton 2,5
Surveillance of vans and truckers Surveillance fee per day USD/truck/day 3
Restaurant Rent per month USD/m2 3
Hotel Rent per month USD/m2 3
Meeting rooms Rent per month USD/m2 3

* The rest of the services are detailed in the pre-feasibility studies.

Benefits for the investor

  • 19 MM USD in tax incentives
  • Exemption from revenue tax for 10 years
  • Exemption from exchange currency tax
  • Legal stability under the granting contract normative
  • Application of the best international practices of efficiency and safety about the management of load and offered services


Objective

To develop activities related with products transport, processing, distribution and storage in order to support all the ports and airports of Ecuador and promote the national competitive through infrastructure and quality services that allow to optimize the logistic processes.


Project Details

Strategic project that receives services directed to supporting the logistic activity of foreign trade (land port) and local productive activities (agro cluster); moreover, this platform will be used as an urban and regional distribution center.


Technical description of the Project

  • This project uses the Design-Build- Operate-Transfer (DBOT) model for the provision of infrastructure and the Landlord model for the provision of services
    – The Decentralized Autonomous Provincial Government of Santo Domingo de los Tsáchilas will give to the investor the ground and it will provide all the facilities required for the operation of the platform. Also the local government will assure the cooperation with the public entities related to platform services like: National Customs Service (SENAE), National Transport Agency (ATN), Ministry of Interior and Municipality of Santo Domingo de los Colorados
    – The investor will build, operate and assure the maintenance of the platform during the concession period, later the investor will transfer the infrastructure to Autonomous Decentralized Provincial Government of Santo Domingo de los Colorados
  • The pre-feasibility studies were made by INECO
  • The environmental licenses will be obtained during the structuring phase of project


Market

  • National users: companies and natural persons linked to transport, processing and storage products within supply and logistic chain
  • ADT for freight/cargo transportation: 3 ́400.000 vehicles
  • ADT for light transportation: 864.000 vehicles


Regulatory Framework

  • Constitution of the Republic of Ecuador
  • Organic Code of Territorial Organization, Autonomy and Decentralization (COOTAD, Spanish acronym)
  • Environment Organic Code
  • Production, Trade and Investment Organic Code (COPCI, Spanish acronym)
  • Public-private Partnership and Foreign Investment Organic Incentive Law
  • Executive Order No. 810
  • Executive Order No. 582
  • Financing Program of Public-Private Partnership Projects of Banco de Desarrollo del Ecuador B.P


Location

Santo Domingo de los Tsáchilas province, Santo Domingo de los Colorados city.
Direct Beneficiaries: 1.500 families. More than 100 thousand families to regional level.