Distrito BAQ (IFC-47177)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Colombia
Geographic location where the impacts of the investment may be experienced.
Specific Location
District of Barranquilla
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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 6, 2023
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
Government of Colombia
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Infrastructure
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 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)
$ 67.00 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.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 22, 2023

Disclosed by Bank Sep 5, 2023

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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 proposed investment is a Sustainability Linked Credit Risk Sharing Facility for up to US$ 50 million in COP$ equivalent to a commercial bank to provide a Sustainability Linked Loan of up to US$ 67 million in COP$ equivalent to the District of Barranquilla (BAQ) for a 10-year tenor with a 2-year grace. This refinancing will be the first Sustainable Linked Loan in the subnational market in the region and the first time IFC deploys Sustainability Linked Finance through an RSF structure. It will improve the District’s financials and debt profile, having an indirect development impact by optimizing its cash flows, reducing vulnerability to refinancing, and freeing up resources for investments in sustainable urban infrastructure and social programs.

BAQ will use the SLL funds to refinance existing debt that was used to finance the construction of the subprojects below, all of which are operational:

Neighborhood Local Street Infrastructure (Barrios a la Obra): Between 2008 and 2023, this sub-project aimed at paving/restoring approximately 353 km of existing access roads, streets, and sidewalks in low-income neighborhoods of Barranquilla. which has had a significant impact on the communities in terms of inclusion and connectivity as well as adaptation to climate change with paved roads that are less vulnerable to damage due to flooding. BAQ’s Urban Development Company (EDUBAR) is responsible for the management and implementation of this program.

Public Parks Renovations (Todos al Parque): Since 2011, this sub-project has entailed the renovation of 202 parks and the construction of 48 public parks, mostly in low-income areas. The new developments are related to joint work between the private real estate developers in Barranquilla and the District, using areas provided by the private party around the real estate project location. As a result, 93% of households in 188 neighborhoods have a green public space within an 8-minute walk distance. BAQ’s District Infrastructure Agency (ADI) is responsible for managing Todos al Parque.

The Magdalena River Waterfront (Gran Malecon) functional units 1 & 2: Gran Malecon is a linear public space of five kilometers designed to rebuild the connection between Barranquilla and the Magdalena River. The Gran Malecon was developed in an area that was abandoned and unused and that has become one of the main centers of attraction in the city. It was designed in four functional units, intervening 429 hectares of public space. The Gran Malecon was opened to the public in 2017. IFC Project only involves Functional Units 1 and 2.

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

As stated by the IFC, the investment is a Sustainability Linked Credit Risk Sharing Facility for up to US$ 50 million in COP$ equivalent to a commercial bank to provide a Sustainability Linked Loan to District of Barranquilla. The proceeds from the Sustainability Linked Loan of up to US$ 67 million in COP$ equivalent will be used to refinance existing debt that was originally used to finance the following

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.

A financial intermediary will be involved by the IFC to provide a loan to the District of Barranquilla. However, at the time of disclosure, the IFC did not provide the name of the intermediary institution.


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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Distrito Especial, Industrial y Portuario de Barranquilla:

Lizette Bermejo Herrera - Advisor, Secretary of Finance
Email: lquintero@barranquilla.gov.co
Address: Calle 34 No. 43-31 – Barranquilla, Colombia
Website: https://www.barranquilla.gov.co/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works