Esval, banks sign US$35.9mn loan

Chile's Region V water utility Esval has signed a syndicated loan with five banks for some US$35.9mn, Esval announced. Scotiabank Sud Americano structured the loan agreement in Chile's inflation-indexed currency, the UF. The other participating banks were Banco de Credito e Inversiones, Banco Security, BBVA Banco Bhif and HSBC Bank Chile. Esval's 2003-2010 investment pledge with the country's waterworks regulator, the SISS, is some US$231mn. The utility serves a little over 1.4 million residents, and according to the latest SISS information, its drinking water coverage reaches 99.2% and sewerage service 90.2%, while sewage (wastewater) treatment stands at 69.1%. This last indicator should increase to 91.1% by year-end, to 93.2% in 2005 and 97.7% in 2010. Last month, Chile's state companies administrator SEP awarded Esval a concession to operate Region IV water utility Essco, after Esval submitted a bid for some US$89.7mn. Also last month, the Chilean government's industry development arm Corfo approved the sale by UK water services and infrastructure management group AWG of its 49.8% stake (US$97mn) in Esval to local financial group Consorcio Financiero that picked up 44.8% and the Moneda Chile Fund that picked up the other 5%.