As expected, Ecuador has awarded the 30-year operating concession of its Manta port, on the country’s Pacific coast, to the only bidder – Hong Kong-based Hutchinson Port Holdings (HPH), the world’s largest port operator. HPH has offered to invest $468 million to add to the government’s initial commitment of $55 million to transform the cargo port into a mega, deep-water container port to serve as a gateway to South America for the increasing trade between Asia and the Continent.
Category: Regions
Posted inDaily Brief
Nicaragua Ready For IMF
Despite the continuing political instability in the country, Nicaragua’s government says the country is ready to be inspected by the International Monetary Fund (IMF) to be included in the multilateral’s lending program. Nicaragua’s completed tax law and budget reform, requirements laid down by the IMF for inclusion of the Central American nation, means it is confident of securing an initial $100 million loan from the lender.
Posted inDaily Brief
Colombia Signs More E&P Contracts
Colombia has signed oil exploration and production contracts with Canada’s Petrominerales and local firm Sogomi Energy, taking to 24 the E&P contracts signed so far this year by the state. The companies will be able to carry out exploration in a block each in the Llanos oil basin. Colombia has been keen to attract foreign investment to its hydrocarbons industry and aims to sign a total of 30 E&P contracts this year. Crude production this year has risen to around 600,000 barrels per day (bpd) up from 500,00o bpd last year.
Posted inDaily Brief
Colombians To Take Greater Stake In Peruvian Power
Colombia’s largest energy provider, state-controlled Interconexión Eléctrica SA (ISA) and state-owned Empresa de Energía de Bogotá are to bid for a greater stake in Peruvian electricity transmission line Consorcio TransMantaro when it comes to the block on Monday, September 11. The two Colombian firms are planning to buy an additional 15% share to add to the 57% of the company they bought from Canada’s Hydro-Québec in May for $67 million. The share acquisition will add to ISA’s growing presence in the regional power market.
Posted inDaily Brief
Calderón Declared President-elect
Mexico’s Federal Electoral Court has declared Felipe Calderón of the ruling PAN party the next president of Mexico. He will assume the presidency from outgoing president, Vicente Fox, on December 1 for a term of six years. The seven electoral judges ruled unanimously in favor of Calderón as the victor of the country’s July 2 elections, rejecting challenges presented by losing candidate Andrés Manuel Lopez Obrador (AMLO). Despite the court ruling, AMLO’s supporters – who have disrupted the country and Congress in recent weeks – vowed to carry on protesting the outcome. AMLO himself has implied he may set up a parallel government. The Court’s decision cannot be appealed.
Posted inDaily Brief
Mexico Swaps $500 Million Dollar-Denominated Debt
Mexico swapped $500 million of dollar-denominated bonds, Friday, in exchange for local-currency debt. The debt swap is part of a larger program which aims to continue cutting Mexico’s external debt in favor of domestic debt. Last November, Mexico sold $65 million of warrants to enable investors to swap $2.5 billion dollar-denominated securities for peso debt this year. Then in March this year, the sovereign sold warrants to swap euro-denominated bonds worth $722 million (€600 million) into local-currency bonds due in 2013 and 2023. Mexico is hoping to bring down its foreign debt-to-GDP ratio to around 6% by the end of this year from around 12% in 2000.
Posted inDaily Brief
Colombia Sells $1 Billion Global Bond
Colombia was also tapping international markets yesterday, Wednesday, when it sold $1 billion of a new global bond, due in 2037 to fund the buyback of up to $700 million of foreign-currency bonds. The bonds were sold at a yield of 7.453% – 250 basis points above comparable US treasuries – and carry a coupon of 7.375%. The sovereign offered to buy back its 2020, 2027 and 2033 issues, which together account for $700 million. The buyback is part of the government’s strategy of altering the profile of Colombia’s debt. The sale is being managed by Goldman Sachs and Merrill Lynch.
Posted inDaily Brief
Zavala Joins Backus And Johnston
Ernesto Zavala, formerly Peru’s economy minister under Alejandro Toledo, has joined brewer Backus and Johnston, as corporate affairs director. Robert Priday, managing director of the Peruvian subsidiary of Anglo-South African SABMiller, welcomed Zavala as one of Peru’s brightest young men.
Posted inMagazine
Colombian Black Gold
After years as the awkward stepchild for oil companies operating in South America, Colombia is looking awfully attractive.
Posted inMagazine
If You Build It
Central America is copying and improving on the Mexican model of large-scale, planned tourist centers by FONATUR.