The IDB has approved a loan of $37 million for the design, development, construction and operation of a new steel producing plant with a capacity for 400,000 tons per year in Milagros, Guayas province, Ecuador.
The project will contribute to a change in the country’s productive sector, creating more than 500 jobs, and includes training for the new employees, a shared value plan promoted by the IDB that is expected to benefit more than 800 recyclers, and a certificate of gender equity.
It will be developed by Adelca, a leader in the steel industry. Adelca is a company whose raw material is scrap metal, such that its production processes are ecologically sustainable. Since the company’s founding it has continuously innovated both its production systems and the services it offers its clients through advanced technology and well-trained personnel.
The financing approved by the IDB for the steel plant includes a $37 million loan from its ordinary capital and $12 million from the China Co-Financing Fund for Latin America and the Caribbean, a fund created by the Chinese government to co-finance projects in the region with the IDB. The IDB financing complements a $30 million loan approved in June by the Inter-American Investment Corporation, a member of the IDB Group
It is expected that over the next four years Ecuador will increase its industrial development by supporting investments in infrastructure; energy generation; road, seaport and airport construction; the development of refineries; and the shipping, petrochemical, metal and steel industries.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-term financing for economic, social and institutional development in Latin America and the Caribbean.The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.