Where the impacts of the investment may be experienced.
Location: Sabana Grande, Managua
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.
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
- Inter-American Investment Corporation (IIC)
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2017-09-08
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Compania Distribuidora de Nicaragua S.A. (CDN)
The holder of the loan, grant, or other investment.
The service or industry focus of the investment. A project can have several sectors.
- Industry and Trade
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 13.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
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Compania Distribuidora de Nicaragua S.A.
FROM THE IIC:
The loan to CDN aims to provide long-term financing for the construction of a new distribution center located in Sabana Grande, outside of Managua capital. The construction will include storage warehouses, parking lots, administrative office buildings, service areas, and a new filtration well system, which re-inserts rainwater into the aquifers of the zone. This will be the biggest warehousing facility in the country that has this sustainability characteristic.
IIC financing will be used to construct a distribution center for CDN, outside of the metropolitan area of Managua.
At the same time and as part of the indirect benefits of the project, some rural roads in poor condition around the project will be enhanced. For example: routes #1 and #154 that rides East-West could be connected completely with a North-South corridor that passes in front of the new facilities. Approximately, 1.6 kilometers in bad conditions (access roads to new CDN facilities) will be enhanced to facilitate better circulation around the area, and will also help decongesting traffic over Nicaragua's most important route (Pan-American CA#1).
Since the Project can produce negative impacts of low-to-medium magnitude and importance that can be avoided or mitigated following generally recognized performance standards and criteria, it has been classified in Category B, according to IIC’s Sustainability Policy. The main E&S risks identified were related to environmental management, Work and Labor Conditions, Efficient use of resources and the prevention of contamination, Health and Community Safety.
The Project, located about 1.4 km outside the center of Managua (Comarca Sabana Grande) on a 157,440.158 m2 land previously used for peanut production, the warehouse has a physical footprint of 11,700 m2, a height of 15 m and a total construction area of 16,719.09 m2. More specifically, the center is located close to Carretera Norte, the principal artery for transporting goods in and out of Managua.
In addition to the plant, the center will include a parking lot, administrative offices, service areas, water treatment plant, a small access road on CDN land, and a transmission line.
- Inter-American Investment Corporation (IIC)
IIC financing for the project is estimated in US$13 million. The estimated total project is estimated at US$25 million.
The Compañía Distribuidora de Nicaragua S.A. (CDN) is a recently formed distribution company with operations in Nicaragua since 2013, and is a subsidiary of INCECA (holding company), which also owns “Compañía Cervecera de Nicaragua” or “CCN” (largest Nicaraguan beverage company that produces water, juice, and beer) and “Punto Ideal” (a chain of convenience stores).
ACCOUNTABILITY MECHANISM OF IIC
The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org
. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html
(in English) or http://www.iadb.org/es/mici/mici,1752.html