Corporacion Quiport of Ecuador

MIGA issued three guarantees of $32.8 million, $16.4 million, and $16.4 million to the Aecon Group INC. of Canada, the HAS Development Corporation of the United States, and ADC Management Ltd. of the United Kingdom for their respective shareholder loans to Corporacion Quiport of Ecuador. In addition, MIGA also issued guarantees of $450,000, $225,000, and $225,000 for the investors' respective equity investments in the project enterprise. The Aecon Group and HAS Development Corporation have coverage for a period of fourteen years for their shareholder loans while the remaining four guarantees are for a period for fifteen years. Each guarantee provides coverage against the risks of Transfer Restriction, War and Civil Disturbance, and Breach of Contract.

The project involves the construction of a new airport near Puembo, 24 km. outside the capital city of Quito. The project will be a key economic driver for sustainable economic development of the metropolitan region of Quito. The airport is expected to be operational by early 2008 and will replace the existing airport in the city of Quito, which suffers from safety deficiencies as well as capacity constraints. The current airport has a short runway, restrictions on airspace, and restrictions on the range of direct flights. The new airport will include a longer runway and will be located away from the city center improving public safety and reducing noise pollution.

Quiport will have significant development impacts including job creation, infrastructure development, and trade and investment facilitation. The operations and management contractors have already employed 180 local employees for the management of the new airport. Up to 600 local staff are expected to be hired for construction; contractors are expected to directly hire an additional 2,000 local staff for other operations. Employees will be trained both on-site and in the U.S. and Canada. The new airport will also have numerous downstream benefits for Ecuadorian companies. The improved freight capacity will generate foreign exchange earnings from export revenues of perishable goods such as floriculture products. The tourism sector is also expected to grow as result of the investment.