[China Co-Financing Fund] IDB administers 25 million USD loan from CHC to Contecon Manzanillo for Container Port and Logistics Facility

On 21 October 2015, the Inter-American Development Bank (IDB) signed a loan contract with Contecon Manzanillo to finance a Container Port and Logistics Facility, through which the IDB would provide 65 million USD from its ordinary capital (Loan 3348A/OC-ME-1, Loan 3348A/OC-ME-2), and the People's Bank of China would provide 25 million USD (Loan 3348/CH-ME-1, Loan 3348/CH-ME-2) via the China Co-Financing Fund for Latin America and the Caribbean (CHC). The IDB would also administer a B loan, which would be financed by other commercial banks or financial institutions (Loan 3348B/OC-ME). The IDB approval date for this loan financing was 19 November 2014, and it refers to this project as "ME-L1152 : Contecon Manzanillo Container Port and Logistics Facility". This project would involve the expansion of the pre-existing Manzanillo Container Port and Logistics Facility, located in the State of Colima, Mexico. The loan financing went to the development of infrastructure to help increase the port's capacity by 1.35 million TEU annually by 2021. It is also intended to directly contribute to the Government of Mexico’s Plan Nacional de Desarrollo 2013-2018. The specific portions of the container port and logistics facility that the China Co-Financing Fund and IDB ordinary capital loans went towards were yard development, additional ship-to-shore cranes and all related yard equipment, ground slots, intermodal facilities, other related infrastructure, and all indirect costs related to the financing itself (Project Overview). The IDB also offered the project technical support. The loan recipient, Contecton Manzanillo, is a special purpose vehicle created for the purpose of creating the container port and logistics facility and is a subsidiary of International Container Terminal Services Inc. (ICTSI). ICTSI is a private port management and development company headquartered in the Philippines and was awarded a 34 year concession contract for the development and operation of the Manzanillo Container Port and Logistics Facility by the Mexican Secretariat of Communications and Transportation (Secretaría de Comunicaciones y Transporte, SCT), through the Manzanillo Port Administration (Administración Portuaria Integral de Manzanillo S.A. de C.V.) in January 2010. Terminal construction for the original Container Port and Logistics Facility, which was expanded upon by this project, began in December 2010, and on August 5, 2013, the first vehicle was received for operation (per the Contecon Manzanillo website). Construction was 90 percent complete and the project was operating at a 10 percent capacity in October 2013, per the Environmental and Social Management Report (ESMR) from the IDB. China Harbour Engineering Company (CHEC) was the primary contractor on the initial construction of the Container Port and Logistics Facility, but it is unclear if they were involved in the parts of the project funded by the China Co-Financing Fund and other IDB loan. In October 2019, two gantry cranes and five rubber tire gantries (RTG) were delivered to the port, likely funded through this project. In addition to the IDB ordinary capital loan, other co-financiers for the program included the International Finance Corporation (IFC), which loaned 65 million USD; the German development bank KfW, which loaned 52.5 million USD; and Standard Chartered Bank. The total project cost was estimated to be about 567 million USD, as of October 2015. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella project ID #86526.

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