Ecuador lining up US$100mn PPP to revamp Esmeraldas port

Ecuador's first package of projects in its registry of PPPs includes an initiative to revamp Esmeraldas port in the northwest of the country.

The initiative, the reference investment for which is US$107mn, with opex estimated at US$141mn is considered of strategic importance for the country, not only for international competitiveness but also considering that several significant mining projects in the north are expected to go into production over the next decade, including the Cascabel copper and gold project.

These mines will require efficient, modern and safe port facilities to ship the concentrates they produce and help optimize their costs.

Esmeraldas is Ecuador's closest port to the Panama Canal. It is located in Esmeraldas province, which borders Colombia to the north.

According to the public-private partnerships secretariat, a lack of investment in the expansion and maintenance of the port infrastructure, as well as deficiencies in technology and outdated facilities, have reduced the port's operability and competitiveness.

The PPP initiative is aimed at optimizing loading and unloading processes to reduce waiting times and improve productivity, as well as ensuring regular maintenance and upgrades of facilities and equipment. 

Dredging will also be carried out to maintain the draft of the dock at 12.5m to guarantee the safe movement of large vessels, restore its full functionality and enable more ships to access the port.

Three investment alternatives are currently being considered to optimize the port: improvement of current conditions; expansion of infrastructure for handling solid and liquid bulk products (fuels); and infrastructure upgrades to handle solids and liquids (fuels) and containers, including refrigerated cargo.

The concession will include the design, financing, construction, maintenance and operation of the port's multipurpose terminal.

This year, the government is expected to work on contracting structuring parties for the PPP. Public-private partnership secretary Pablo Cevallos recently told BNamericas that they must be international companies with specific experience in management of port infrastructure.