Page 38: of Maritime Reporter Magazine (January 2018)

Image: BBDC vironmental impacts of the project. The documentation of R$9.15 billion program for new and existing government the EIA/RIMA (Environmental Impact Study/Environ- projects. Additionally, the latest approval has enabled mental Impact Report) was prepared by Real Consultoria BBDC to contract the ? nancing of $635 million with its e Soluções and submitted to SUDEMA in April 2016. The already agreed ? nancial agent, the Brazilian Development public hearing of the project was held in Lucena in early Bank (BNDES). Both the equity investors and the banks

June 2016, and in July all required approvals were issued. seek comfort from a predicable revenue stream, which

The LP concession certi? es the environmental viability EDPI’s potential for attracting, international ship owners, of the project and marked an important step for the EDPI in need of ship repairs appears to guarantee. project regarding the transition between its planning and execution. At the time BBDC’s project manager for the

DEMAND implementation of the EDPI shipyard, Celso Souza, stated: “Apart from drydocking, vessels require ship repair “In the EDPI project team in Paraíba, Rio de Janeiro and yards for ? xing collision damage, grounding damage, se-

New York, everyone is very enthusiastic about this result”, vere weather damage as well as newbuilding faults and in- and also noted: “We have reached an important goal for the stallation of capital items (BWT systems, Scrubbers, etc.). development of the project, but we recognize that there is The vast majority of ship drydocking and repair contracts still a lot to do.” According to Saginaw, “The preliminary are negotiated on a spot basis, making the investment license was a key point for us. Based on the results of the decision dependent on an extremely robust characteriza- initial environmental studies we conducted, we expected tion and quanti? cation of drydocking demand,” explained to get the license, but it was important to have it on hand to David Saginaw. Four factors play a major role in win- provide security to the process of ? nancing the project. We ning the repair contract: proximity, price, promptness and have talked with several regional actors achieving good performance. The EDPI yard primarily targets the global results, and now we are intensifying the discussions with merchant marine ? eets that require a repair yard of inter- interested investors, both in Brazil and abroad. We are ad- national standard, which can accommodate a full range vancing on several fronts with potential strategic partners of repair services, with high quality standards and quick who are interested in the project. We are con? dent in the service. It is estimated over 90% of drydocking and ship project - as well as on the overall picture of the country, repair revenues for the EDPI will be denominated in US which has passed a critical point along the way, and we are dollars, sourced from international ship owners. It is fore- optimistic that we will be able to start the works in 2019, casted that there will be a growing regional market poten- with the ? rst repairs services already provided in 2021.” tial though cabotage and OSV repairs. With the ongoing development of the adjacent Equatorial Margin oil and gas exploration projects, the number of ships of all sizes need-

FINANCING

The board of directors of the Merchant Marine Fund ing repair in the region is guaranteed to grow. Even with (FMM), at Brazil’s Ministry of Transport, Ports and Civil some large newly built local shipyards gravitating to ship

Aviation, has granted its approval to provide R$2.15 bil- repair due to the scarcity of new ship orders, it is perceived lion in ? nance to build the new ship repair facility in the that EDPI will still be a competitive facility due to loca- country. As part of the deal, the BBDC will use the basis tion, design and modern work processes and the largest fund to construct the EDPI ship repair yard facility. The facility in the South Atlantic basin, purpose built for ship new ship repair facility will be constructed as part of an repair and drydocking.

38 Maritime Reporter & Engineering News • JANUARY 2018

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