Early Warning System

Countries

Peru

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

IDB Invest (IDBI)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Oct 10, 2019

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Los Portales, S.A.

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Construction

The service or industry focus of the investment. A project can have several sectors.

Potential Rights Impacts

Housing & Property

Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 40.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 40.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Primary Source

Original disclosure @ IDBI website

Updated in EWS Apr 2, 2020

Disclosed by Bank May 9, 2019

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The project involves a Senior Loan for US$40 million with a ten-year term intended to finance part of the plan to purchase new land for Los Portales to be used in urban development and social housing projects in eight Peruvian cities. It is estimated that 19 projects will be developed in eight cities in Peru, which will benefit from access to first-time buyer housing for about 12,000 families in the socioeconomic sectors B-, C, and D.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Los Portales S.A. ("LP" or "the Company") is a company founded in 1996 and active in the housing and hotel business in Peru. LP's operations are primarily based on real estate activity and it is a leader in the urban development business market, operating in 18 cities and 13 provinces in Peru.

The Senior Loan for US$40 million is intended to finance part of the plan to purchase new land for Los Portales to be used in urban development and social housing projects in eight Peruvian cities. It is estimated that 19 projects will be developed in eight cities in Peru, which will benefit from access to first-time buyer housing for about 12,000 families in the socioeconomic sectors B-, C, and D.

People Affected By This Project

People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Information on social and environmental impacts and risks for the project are not provided. The disclosed information relates primarily to the company's Integrated Management Policy & Management System and procedures, covering risk prevention, environmental preservation, and development of socially responsible behavior.

Nevertheless, it is stated that "urban development projects involve moving earth for improved access to the project"; “no indigenous peoples are affected”; “there are no effects on cultural heritage”, and “there is no displacement of people or economic activities”.

It is informed that the Environmental and Social Action Plan(ESAP) is attached, but it is not.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

IDB Invest (IDBI)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

In operation since 1996, Los Portales S.A. is a Peruvian company with the following core business lines: (i) hospitality services, including the operation of five 3- to 5-star hotels catering to corporate and executive travelers (ii) real estate services, focusing on real property sales through urban land development and low-cost housing projects; and (iii) parking facilities services, including the operation, utilization, and management of its own such facilities via franchise or lease.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Juan Carlos Rubio
Central Manager, Administration and Finance
(511) 211 4466

jcrubio@losportales.com.pe