In 2012 the Banco Internacional de Costa Rica, SA (BICSA) received a mandate from Port Authority Grain Company Caldera (SPGC) to structure a medium-term credit to finance the construction and operation of the new Caldera Port Grain Terminal in Costa Rica. The project involved a total investment of US$ 44.2 million, of which $30.0 million was financed through the credit structured by BICSA.
In Phase I of the project, Nathan conducted due diligence analysis of the proposed investment plan for the implementation of the new grain terminal at the Caldera Port. Nathan’s responsibility was to advise on the development of the concession contract including its technical specifications, performance parameters and terms and conditions, and provide analysis on demand forecasts, operating revenues, and the technical feasibility of the proposed new terminal. Nathan analyzed relevant markets, the regulatory and economic environment, the proposed construction plan, the proposed environmental plan, the proposed operations plan, the proposed insurance plan, the proposed commercial plan, and the main assumptions of the financial model.
In Phase II, Nathan provided independent engineering services during the construction of the new terminal. Nathan’s responsibility was to inspect the construction works, approve construction monthly reports, approve change orders, and approve lenders’ disbursements.
Nathan provided the lenders the following advisory services during construction:
- Advice required by lenders in order to make disbursements in accordance with the loan agreement
- Construction monitoring services for the project
- Information on the verification of the intended use of funds Issuance of a final independent engineering certificate stating that the project was properly constructed in a safe and prudent manner, met best engineering industry practices, and complied with the requirements of the concession agreement.