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NAME OF PROJECT: Beautiful Playas-Engabo Major Housing Project in the best second weather in the world, 2009 AMOUNT

TO BE LOANED: US$ 450 millions American Dollars. PURPOSE: To Construct 20000 low-to-medium income people houses, in stages of 5,000 houses each. Contracts with local Municipalities will be celebrated between the parties, namely: the projects promoters, the Municipality of Playas-Engabao, and the houses beneficiaries, and a qualified international financial institution. INTEREST: 5% annually. TERM: 25 years with a 2-years grace period. FORM OF PAYMENT: Government Bonds of US$5,000.00 Dollars to be subsidized by Ecuadorian Government, US$300 Dollars of down payment by the applicant, and US$18,000 to be financed by international investors( the portfolio and debentures could be bought by the Ecuadorian Housing Bank or similar IFI entity). GUARANTEE: Municipal Bonds and Government Construction Bonds both totaling US$460,000,0000 Dollars, and a pool of mortgage for $460 Millions Dollars to be paid within a 25-years term. ENTREPRENEUR: Group of Landlords minimum covering 1,000 hectares of lands where the construction projects per stages are going to be undertake it by leading Construction firms in Ecuador. PROJECT ORIGIN: Ecuadorian are suffering a 1.6 million deficit of houses which an increasing growth of 50,000 houses a year. The main projects purpose is to cover only the increasing growth per year, applying friendly policies and the use of new international sources of capital with appropriate long-term credit scenario to let the low-income people to adjust a reasonable monthly payment and to obtain the government construction bond of 22.5% total house cost. DESCRIPTION OF PROJECT: Several leading constructing company in Ecuador, duly approved by the Ministry of Housing of Ecuador, are undertaking the challenger to construct low-income peoples houses, including important construction companies based with long experience in the construction business, like major works in Guayaquil such commercial malls, Guayas Bay shore, shopping centers, supermarket buildings, churches, multi-family houses, individual houses, etc.; and the accumulation of sound equity on paid-in capital, construction machinery and labor force, and good relations with political and banking circle in Ecuador. FINANCING PLAN: the total cost of construction per house, including land and the infrastructure works is US$23,000 American Dollars. The opportunity cost on raw materials, such as steel, iron and cement are guaranteed by future purchasing contracts with the local cement plant and steel mill under excellent price policy to be covered by sureness of the big sales amounts required in the project, in such way, these providers will act as covered partners in this construction project. In addition, the low-cost labor force and different lands provided by the local Municipalities, and the huge deficit of houses, assures to undertake this project into a success. The landlords will transfer the property dominion into a fiduciary contract which also will receive the corresponding transferring value for the purchasing of their lands. The funds will be placed in the fiduciary contract by a prime bank against a bank guarantee issued by an international financing company. The Funds Administrator or Trustee will manage the funds to undertake for developing the entire housing project in stages of 2,000 houses each.

Other significant factor that influences strongly in the success in this project is the current Governments enthusiasm in the solution of low-income people deficit houses, by compromising a subsidiary payment called a construction bond of US$5,000 Dollars per finishing constructed house, plus a down-payment of US$300.00 per applicant, totaling US$23,000. This means that only US$18,000 Dollars will be financed by our lender in practice, backing by a Pool of mortgages to be paid in 25 years at a rate of US$100 per month, and US$1,200 annually, and US$30,000 in total during 25 years. The BEV-Ecuadorian Housing Bank could also help and participate in developing this important housing project, acting a second floor bank through financing the rediscount of 70% of the portfolio of the pool of mortgages of 20,000 houses, whose cost of constructions were financed by international financing investors on favor of the constructing firms in Ecuador or international financing companies against sales contracts, per each constructed house, and already endorsed by the beneficiaries on its favor. We also are looking for the patronage of international institution such as Children International whose foster parents, living mainly in the USA, will be willing to make the very low daily payment to provide a solid concrete house per child in Ecuador. Other sources of potential buyers are Ecuadorian resident living abroad, mainly in the United States, Spain, and Italy who will be invited to participate in this construction project to provide a house for a low-income relatives living in Ecuador by paying US$100.00 per month. For this purpose we can established a new processing system of transferring or wiring the money from those countries directly to the Trust under pre-instructed conditions by the international lender or organization. In addition, this project contemplates in sales marketing with the MIDUVI and BEV-Banco Ecuatoriano de la Viviendas (Ecuadorian Housing Bank) data base of 100,000 potential buyers with all up-dated necessary information to choose easily 50,000 qualified buyers for the houses of this project. Profile for Rediscount Portfolio : 1.- The Financing Institution present the portfolio for rediscounting at the BEV-Ecuadorian Housing Bank. 2.- According to financing conditions: Maximum Sale Price is US$8,000 Dollars, maximum amount to be rediscount is US$5,400 Dollars. The percentage to be rediscount is up to 100% of credit line, from IFI ( Intermediate Financing Institution) extended to BF(Final Beneficiary), under the following scenario: Term: Up to 15 years. BEVs Interest 1.5% + IFIs free margin to be readjusted semiannually. Credit repayments: To be paid monthly. Guarantees: Municipal Bonds, government construction bonds to be place in an international banking account covering a total of US$460 Millions American Dollars. 3.- The commitment to individualize the mortgage by the IFI-Promoter. 4.- Monthly payment, according to IFIs interest is : US$100 with a monthly gross income from the final beneficiary of $300 dollars, with a rate of 1 to 3. 5.-Rediscount : By line of credit extended to the constructor and final beneficiary.

Financing Scenario: The constructor is granted with funds for the construction works for housing up to months, according an approved scheduled chart and time frame during which the said construction on the lot should be finished. Loan Term for Final Beneficiary: Up to 25 years The loan for the constructor is base on MIDUVOs validation on the project according to: a. Technology : Approved project by Municipalities. b.- Commercial : Determination on real existing demand for construction in such area constituting at least 51%d of the total project , that is the pre sales. c.- Financing : Presentation of international financing contract between the IFI and the International Investors to finance the completed project and the report on projects feasibility from IFI. d.- Constructing Firms or promoters present the alternative to obtain an international prime bank guarantee to cover the total cost of the housing construction, as collateral to convert themselves into Preferred Customers, for 12 and 24 months to finish the housing construction and obtain the title deeds to the houses and to reach the rediscount operations with the MIDUVI-Mnistry of Housing of Ecuador. e. Leading constructing firms also offer a revolving bank guarantee from an international prime bank to cover 50% the first 90 monthly payments and later for the following 90 monthly payments, once that the first repayments have been accomplished under the following chart: f.- Priority of the Project : Preferences for the projects protected under an umbrella of a prime bank guarantee. g.- Financing terms or financing scenario for loans for housing construction of US$23,000 Dollars per complete construction housing unit. h.- Rediscount coverage : Up to 90% of the portfolio value. i.- Term : 12 and 24 months of constructing period. j.- Interest : 5% Annually. k.-Guarantees : Municipal bonds of US$100.00 each and Government Construction bonds of US$5,000 Dollars. Sales Mortgage per each housing units to be sold to the final beneficiary. l.- Execute Control Instruments : By IFI, Trustee or another. OTHERS PROJECTS OBJECTIVES.Besides, the current projects objective is focused is contributing to develop a real housing market in Ecuador, to help to overcome the economic standstill that Ecuador is facing at this moment. Housing construction is one of sectors that generates more direct and indirect JOBS in a short term. We see the housing construction as a real estate industry, using fresh funds resources on long term and with financing tools that eliminate some taxes or encumbrances. Housing construction improve the family welfare and generates massive labor and employment in the less possible time frame.

The housing construction represents for the Ecuadorian economy , in the current project, as the best distributed investment, because it goes and reach the biggest number of families helping to improve peoples purchasing capacity, constituting a long term saving, replacing the classic monthly rent cannon which at the end it does not produce any result; in our project the Ecuadorian family is paying its own house and in this manner the money or funds used are distributed in a vast number of providers from all over the economic sectors. The majority of the material and products employed in the construction field are domestically made and It is important to keep in mind that $0.35 cents of a dollar invested in the construction, it goes to informal labor of our economy. This project will benefit around 100,000 people that belongs to the middle cast and below, this means an average of 5 people per house. They normally could not undertake this project individually, because they have not available the necessary tools or financial instruments or banking to execute this important project. Thus the urgency to link all the factors to undertake the construction of houses, such as the subsidy or construction bond granted by the Ecuadorian government, the international banking guarantee, the IFI as a potential discounter of the pool of mortgages portfolio for the 20,000 houses to be constructed, and the final beneficiary with its only US$300.00 Dollars. A.- LANDLORDS AND CONSTRUCTORS.The landlords owners of the most appropriate and characteristics lands for developing this project, under the best construction costs and basic infrastructure parameters. This incorporation avoid that the landlord sells his land at a lower price, instead he is able to sell it at the best opportunity price being part of this project which sells constructed houses with all basic infrastructure. The repayments for the lands will be administrated by a qualified trustee that is familiarized and counts also with a good infrastructure to manage as well the funds placed by an international financing firm as the funds generated from the sales of constructed houses. The constructing firms that will provide with houses designing drawing and the municipalities permits and authorizations, including their construction systems. Besides, the constructing firms will conduct the ground topography, soil studies, the feasibility studies on construction costs; including housing finishing, sewer, drainage, electric and telephonic network, and water pipeline installations. The constructing firms will also provide for the trusts autonomous capital with a descriptive report and technical specifications, complete work budget, including retaining of taxes. The constructor also will elaborate the evaluation schedule of works and the disbursement chart of investment. The constructor will work jointly with the house sales promoters to assure the construction feasibility and projects commercialization to reach the sales equilibrium point, which will be guarantee by a prime banks stating the following: .- Construction starting date fixed by the promoter. .- The assurance to count with funds and necessary financing instruments to finish the all construction works. .- Ending date for all works. .- The assurance that the funds will conducted exclusively to undertake this project. .- To demonstrate that the project has technical, financial and legal suitability to be accomplished. .- Sales schedule with appropriate customers or final beneficiaries, who assure with their owned resources, including other source of resources and financing instruments. .- To involve each potential purchaser or final beneficiary to accomplish the conditioning fulfillment to overcome this project.

The constructing companies and sales promoters will integrate part of the Trust that will administrate the funds for all housing construction operations and sales of the houses respectively, in every stage of this project. The projects trustee will administrate all banking financial operations. B. - PROPER TECNOLOGY. For developing this housing construction project it is necessary to apply an excellent construction technology that provides the following characteristics: 1.- The best construction costs by employing high structural capacity materials. 2.- High resistance / weight rate to absorb seismic movements. 3.- Fast construction system with a minimum of supervision. 4.- Long-useful-life materials employed for the houses construction. 5.- Modular flexibility to allow adjusting extensional construction works. 6.- Solid and minimum wall weight. 7.- Excellent thermal resistance to save energy and environmental control for coldness and hotness. 8.- Facility to hide electric and sewer installations. The technology must be protected under a construction patent duly accredited by professional schools in Ecuador, issuing a patent certificate for this project. The use of this patent constitute an additional guarantee for the granting the line of credit by the international investor, based on the log lasting life of the houses which will not suffer any kind of damages or problems during the credit term, as much as for the for the insurance policy that covers this negotiation. C.- FINANCING .The financing will be carried out by the conversion of this project and its promoters into a Preferred Client under a Real State Trust, which will include the following parties: The landlord, the constructor, guarantor, and the trustee which is the Funds Administrator (IFI) for the construction and the funds generated by the project, under a financing scenario that allows the proper development of this project in stages of a 2,000 houses, under the following requirements:: 1.- A reasonable economic down payment equivalent to US$300. 00 to finance the primary expenses costs of the total loan amount to be financed per house.. 2.- Reasonable monthly payment, including the financing of the construction of the basic services such as potable water, sewer, telephone and electricity networks, etc. this means around 30% of the final construction cost per each house. 3.- 5% annual interest fixed during the loan financing term. 4.- The basic repayment term per house is 25 years. 5.- Insurance policy against fire, disaster and disablement. 6.- 1,2% payment for the Funds Administrator to look for financing and be the Portfolio Manager. 7.- Banking guarantee to back 60 monthly payments averaging $100.00 each. Once finishing the first 60 payments, the banking guarantee will roll automatically for the second 60 monthly obligations. The total monthly payments will totalize 100% of the houses cost value. The International Financing Investors will place the all necessary funds, after reaching its equilibrium point, which is covered by the monthly banking guarantee to initiate right away the execution of the project, first of all the model houses, so the interested people can have a real vision of their future selected home from them. The financing company will provide all the

necessary funds to develop this project through its different housing construction stages. D.- SUBSIDY FROM THE STATE.The Ecuadorian state will issue through the MIDUVI-Ministry of Ecuadorian Housing, the respective subsidy bonds applying the housing construction, without increasing the external states debt, and letting in this way the 100% financing of the popular low-income peoples houses construction. This bond issue by MIDUVI-Ministry of Housing Development is currently of US$5,000,00 per house.. Finally, The Trust will joint the four factors aforementioned, and appoint a trustee as administrator, including the Portfolio Manager to accomplish successfully with this project. 2.3.- PROJECTS RISK The projects risk are duly limited and controlled for the following reasons: 100% of the houses total cost is backed by Municipal Bonds and Government Construction Bonds against a 50 World Top bank debentures of cash on the account of each and all employees and workers under the SEA-Santa Elena Agreement, the legal framed contract to cover legally all of them. $23,000.00 that corresponds to all monthly payments averaging $100.00 each backed by a rolling bank guarantee of $1,200, equivalent to 12 monthly payments until the complete payment of each house. Each monthly payment will be deducted from the monthly salary payment of each employee and works under SEA-Santa Elena Agreement. TOTAL CONSTRUCTION HOUSE PRICE PER UNITS: US$23,000.00 DOLLARS A.- US$300.00 down payment to cover only the initial financing costs B.- US$5,00.00 governments subsidy construction bond. C.- US$18,000.00 total loan requested. .- STEPS TO BE TAKEN FOR DEVELOPING THIS PROJECT. .- PROGRAM STARTING.Once the Real Estate Trust is dully established, then the point of equilibrium will be reach by the issuing of the rolling bank guarantee for $1,200.00 per house and per year by the international financing institution, thus the executing of the construction works will start right away according the constructing firms schedule. Total annual payment per 20,000 housing units is US$24,000,000 at a rate of US$1,200 per year, and total payment during the term of twenty years is US$600 Millions Dollars for the total of 20,000 housing units. .- BENEFICIARYS SELECTION The projects administration, Etanolsa S.A. Social Welfare Task Force Team will undertake the selection of potential beneficiaries using mainly the SEA-Santa Elenas employees and works data base formed by 15,000 pre-classified families, plus 5,000 new families to be called by the local media to fulfill all requirements aforementioned and then implementing a record to become part of this project whose objective is to provide a complete finished house per each workers and employees in the SEA-Santa Elena Agreement. .- DEBT ADMINISTRATION.-

The projects trustee will be in charge of collecting all the funds generated by subsidy construction bonds, beneficiary down payments, rolling bank international guarantee, and finally monthly amortization payments. The Trustee also will be responsible for semiannually payments to international lenders, according to the chart of payment including in this project. All legal and financial documents will be placed in a prime banks safekeeping custody until the fulfillment of all projects obligations on favor of the international lender by part of the financial beneficiaries or future house owners.. .- FINANCIAL SCENARIO.The fixed annual interest: 5% annually Total amount to be loaned: $18,000.00 Down Payment: $300.00 Subsidy Government Bond: $5,000.00 Trustee administration fees, including Portfolio Manager: 0.1% per projects registration. .- FINANCING PROJECTS COST.Total amount to be financed per house: $23,000 Dollars, include 70 square meters of construction , 200 square meters lot of land, and also including the infrastructure works for the project. Total Loan to be financed per house: $13,000.00 Trustees administration fee 0.1%: $230.00* International Lending Interest: 5% annually .- HOUSING SALES COSTS.7.1.- COST PER SQUARE METER OF LAND. COST 200 Meters 20,000 HOUSES $15 $3,000 $60,000,000 7.2.- COST PER CONSTRUCTION METER. 1 Floor/M 100 meters 20,000 houses $280.00 $19,600 $392,000,000 7.3.- CONSTRUCTIN COST AND LAND COST.$60,000 $392,000,000 = US$452,000,000.00 7.4.- COST OF URBANIZATION.The cost to urbanize the land selected per each stage of construction, including cost of vehicular and pedestrian streets, sewers, electric lighting and telephonic lines, ecological parks, etc. equivalent to 30% of the total housing construction cost, that means $6,000.00 dollars, considered in the following chart: Land cost = US$3,000 Construction cost = US$13,600 30% Urbanization = US$6,000 TOTAL COST = US$22,600

.- Other costs Technical fees : $100.00 Maintenance expenses $100.00 Other expenses $100.00 Total $300.00 .- Financing Repayment Program.Total cost/house -US$5,000 Government Subsidy Balance and US$300.00 Down Payment, and US$100 of Monthly payment during 25 years. Year Amortization 5% Interest Total Balance TOTAL INTEREST: 5% annually. AVERAGING MONTHLY PAYMENT: $100.00 12.- DESCRIPTION OF THE URBANITATION 12.A.- LOCATION 12.D.- LAND TRANSPORTATION.The lands are located to the north of General Villamil Playas city, crossing the road named Playas-Engabao city. This facilities the urban passenger public transportation as well as the direct private driving transportation to these sites. It only takes 10 minutes by urban public and a spacious bus terminal will be constructed to facilitate all the services related with urban public transportation. Besides, the project includes enough and ad equated parking places transportation per each housing units. 12.E.- LOCAL STREETS.The urbanization will include the construction system of paved 8 meters-width streets that Hill cover the whole urbanization to allow the free driven-transportation for urban public as well as for domestic personal private transportation that allows a everyone to park into their own garage inside their homes. 12.F.- FUNDAMENTALS OF THE DESIGN.To take the best advantage of the land topography, urbanization project has been designed, to construct at the front part of each housing unit a garage or parking place per each unit. Besides, the 30% of green areas that the Municipality demands by law or enforce per urbanization to be constructed. Additional swimming pools for kids will also to be constructed for the security of all families that will be the corresponding beneficiary per each housing unit. 12.G.- CHART OF USES OF SOIL.TOTAL AREA AREA TO BE AREA TRANSFER TO THE MUNICIPALITY COMMERCIAL AREA TO BE SOLD HOUSING AREA TO BE SOLD GREEN AREAS

COMMERCIAL PREMISES TO BE SOLD RESERVED ECOLOGICAL 13. I.- DENSITY.-

In our project we are promoting a Housing Construction Using Simple Technology: "Low-Cost Housing" for short We were able to offer construction at prices up to 50 percent lower than the going rate." The large-scale contract from the city of Playas-Engabao housing project was incorporated into the project, which is being implemented by a Low-Cost Housing project advises the municipal administration on planning and implementing low-cost housing programs, trains and upgrades local human resources, and promotes small- and medium-sized construction companies. Offering know-how and services in international markets on a commercial basis, is responsible for the technical and financial execution of the construction project in the city of Playas-Engabao Housing Project. The main goal is to take action to reduce the desperate need for housing, to improve construction quality and at the same time to create jobs. "Low-cost housing technology means inexpensive, good quality and durable construction," explains Eng. Roura, technical advisor to the project. "The future residents must become owners and pay 10 percent of the construction costs." The remainder is being financed through 15-year construction loans. The Promoting firm administration is providing pre-financing. "By doing this, we want to support a sense of ownership and responsibility among the residents also for repairs, maintenance and looking after the various facilities". The technical cooperation enterprise for this major housing project is widely requested to the international private market for sustainable development with worldwide operations. We are looking for the provision of viable, forward-looking solutions for political, economic, ecological and social development in a globalized world. Our main objective is to improve people's living conditions on a sustainable basis, framed under the following terms and conditions: Urban management, focusing to support local policymakers, administration experts and local authority associations in managing municipal development. For instance, delivery approaches by which to improve public service provision and manage municipal finances and lands. We are aiming for advise stakeholders in politics, administration, business and society on how to implement these approaches. Local land management Advise for towns and communities on managing land and property and help them to create legally defined ownership structures and transparent land markets. Interurban cooperation Advising to local authorities on forging alliances with other towns and communities that help them to assert their political interests and solve common problems more effectively. Creating a live able urban environment (UrbanEco) Strictly confident in promoting environmentally sustainable development in urban settings, for instance through waste management, clean air policies and sustainable production and consumption.

Improving urban infrastructures and services We looking for support the improvement of urban infrastructures in the fields of waste, energy, transport and water; our aim is always to involve the population and the private sector. Local business promotion In cooperation with the private sector to promote the competitiveness of business locations and the local economy. Formula to advise local authorities on promoting small and micro enterprises in the informal sector in order to reduce poverty. Developing socially inclusive, safe cities Help to promote civil society development to enable all citizens to participate in political processes. We also support peaceful forms of conflict transformation. Urban renewal and using cultural resources for development purposes We are aiming to support towns, cities and communities in restoring their historical buildings using local knowledge an important precondition for developing a tourism industry. Good Urban Governance: We are focusing in how to help Municipalities in developing and transition countries, we are aware and acknowledge that urbanization is progressing at such a fast pace that the authorities' administrative and urban development capacities are unable to keep up. As cities are not just economic and political centers but also major sources of social renewal, undesirable social, economic, ecological and institutional developments can often impact negatively on the entire development process. Good 'urban governance' is hence the key to overcoming pressing development problems, above all to

create live able urban environments offering high levels of safety, mobility, leisure opportunities and quality of life, as well as employment for millions of people reduce urban environmental and health risks effectively through advanced waste management, clean air, transport and urban health policies allow disadvantaged population groups to participate in the social and political aspects of urban life and benefit from economic progress offer urban integration support for migrants to the cities transform cities into service centers for rural regions and hubs linked into the global economy create urban networks as superregional forums for cooperation in the fields of peace building and other global issues.

Urban and municipal development : We know that half of all the worlds people are organizing their lives in cities and towns. As the lowest political and administrative level of government, cities are of special significance in the provision of state-run services. They are also the hubs of economic momentum, social life and culture. Cities exert an enormous appeal: their populations are growing day by day. By 2025, two-thirds of the worlds population will live in cities, including Ecuador. Cities with good living conditions offer their inhabitants many opportunities, from a share in economic growth, to access to infrastructure and services, to participation in political decisionmaking. Accompanying these opportunities, however, are growing demands on the capacities of

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municipal institutions. As public funding dwindles, public resources must be stretched to meet the needs of more and more people. In many places, urban poverty is on the rise. Environmental resources are being strained to the limit. In our project we intend to support the Municipality of Playas-Engabao in their search for appropriate solutions to their problems. We are offering them a single address for obtaining services based on broad experience in a variety of fields. These services cover not only specific areas such as water and sewage, provision of housing, transport, air quality, and local economic promotion, but also the preservation of urban cultural traditions. We are looking also to help in implementing municipal management methods. Together with local actors, we believe in the strengthen the capacities of cities and towns to accomplish their tasks economically and in a manner responsive to public concerns. Local development potential is optimized by pooling the resources of the political leadership, the municipal administration, local citizens and enterprises, in pursuit of common purposes and goals as the one in this major housing project. Poor population groups also stand to benefit from this joint effort through better access to public services and being specifically integrated into decision-making processes. The urban millennium (Kofi Annan General Secretary of the United Nations) has begun: in 2008, more than half of the global population will live in cities. By 2030, there will be 2 billion new urban dwellers (180,000 daily), practically all of them in developing countries. The people in these expanding cities need jobs, housing, safe drinking water, provision of goods and facilities for sewage and waste disposal, health care, education and affordable transportation. Governments, administrations, civil organizations and the private sector recognize that they must take action in view of the explosive growth of the urban population in developing countries. In our major housing project we are aware of the challenges confronting city planners and managers. It has been studying and carrying out this urban development project for three years, working with many entities private and public to achieve one of the best major housing dev elopement project in Ecuador. We are now working very hard in this Playas-Engabao Housing Project to promote a dialogue between city administrations and residents of poor districts. Where communication barriers and silence once prevailed, today readiness to discuss and cooperate is taken for granted. Particularly, we are looking for international private financing to extend or provide a successful an urban line of credit backed by an international fund. This will be managed between the residents themselves and offers promotional instruments tailored to the needs of the extremely poor, and it even provides a credit card for obtaining the construction materials. We are working to formulate and implement poverty-oriented development plans, that we considering in our major housing project to implement sustainable maintenance systems for local infrastructures, apply transparent budget management procedures, and provide opportunities to the communities to participate in local decision-making. Our approach is the program to supports state and non-state actors by jointly developing instruments and methods which ensure poverty-oriented and participatory decision-making processes in the districts. Examples include the Poverty Profiling, Mapping and Pro-Poor Planning methodology which allows to assess the poverty situation in a district, and the establishment of district databases in order to improve the availability of social and economic data. Our program will aid districts in the establishment of operations and maintenance (O&M) systems for local infrastructures (such as markets and lorry parks).

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The planning instruments will be developed by the program and for sure to be have been incorporated in the planning guidelines of our national planning commission for the 2008 - 2016 medium-term development plans of the Playas-Engabao Municipality. In our project the district databases will be contributed to a significant increase of Municipality' own revenues.

Guayaquil, Ecuador, South America Name of the Project: Beautiful Engabao Project Construction Firm: Roura Carrion Ca. Ltda. Managing Director: Wellington Gallardo Total Loan Amount: US$460 Million dollars Term: 25 Years, with 3 Years of Grace Period Interest: 5% annually with a 3 years grace period Abstract The beach matter of this project is located at the coast of General Villamil - Playas named Beautiful Engabao Project and covers about 6 kilometers along the Pacific Ocean, right in front of its downtown. At present the beach is found in virgin state that is evidence by abundant sand on all surfaces appearance in the shore of Playas Engabao. This project consist and is summarized in the following segments: The project includes the control and protection of the beach and is complemented with the construction of a Malecon on the seafront, not only because they should form a sole concept, but fundamentally to constitute the best financial feasibility, based in on tax services, to be collect for the infrastructural civil works to be done by such urban regeneration. This will allow covering an important segment of the credit amortization obtained for the construction of the same. To reinforced and assure this feasibility, a Municipal concession contract will be celebrated between the Municipality of Salinas and the promoting firm of this project. Besides, The Municipal Government of Playas authorities leading by its Major is agreed and engaged in developing jointly with this important housing construction project, including the construction of the new malecon, with a global vision considering the following: A design concept that does not block the view to the sea, from the construction erected right in. The Construction of a public pier, to provide service for national vessels, for sport fishing, cruises and other aquatic sports. Loading and services for vessels for cruises.

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Utilization of municipal lots of land close to the seafront to develop infrastructure works such as parking zones, commercial stores, amusement centers, etc. The legal tool to frame and regulate between the private investment sector, in the present case the company (name of the company), and Municipality of Playas is the concession which also will assure the returns of the investment through the collection of municipal taxes. This type of contract give (name of the company), the possibility and security to managed these aforementioned fundamental aspects in the concession. This has been our proposal to the Municipal Government of Playas which has been also accepted by the authorities of the Municipality. Potentiality of the City of Playas - Engabao The project is based mostly in the potentiality of the city of Playas - Engabao. This beach resort has population of 90,0000 inhabitants (during the beach resort season reach to 150,000) and is considered the sea-side resort of Guayaquil (pop. 2.5 million) where the middle-to high class people has constructed numerous apartments and villas to spend the vacation time during our rainy season from December to May. Besides, Playas is been projected as a city of permanent residents, at this moment, counts with characteristics that over-passed the condition of a resort for weekends, and now can offer warm and kindly hospitality all the entire year for national and international visitors. Among its main characteristics as a resort, we can mention the following: Strategic national and international geographical location. Basic infrastructural services. And Well-gained prestige in fishing and nautical activities, including sport fishing. Playas - Engabao is been launched with this project to a national level and international increasing scale. This is due to that the Pacific Rim is also being transforming in the most import commercial route worldwide. As a beach resort is capturing international visitors and offering each time better environmental conditions. In order to do that the city is generating and offering attracting and recreational activities during the whole year, including sports at national, interregional and international level. Playas, considered as the closed beach resort to Guayaquil (one hour drive) is working well in generating firs-class services at a high caliber level and quality where the Municipal Governments authorities working jointly with basic services enterprises whose goals are to provide such services at the most efficient level according to international standard beach resort worldwide. The project focus to capture the increasing demand of domestic and international tourism, with priority to Guayaquils market (2.8 million inhabitants), Cuenca (Countrys third largest city in Ecuador) and the southern region, which based in the proximity and virtual lack of similar productive units, they constitute an assured market for this project. Otherwise, the decreasing of emissive tourism (moving of national travelers toward interior), as a consequence of imperative economic conditions in Ecuador and Worldwide (inflation, increase of international ticketing, hotel and other services tariff, etc) incites and tends domestic tourism, with positive demand for this project. Playas already have a social and cultural Identity; and its community supports, participate, collaborate, and offer the best of its attractiveness and resources, and these are:

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Sun and sea Natural Atmosphere Modern city Restaurants Hotels Aquatic sports, etc.

Social prestige

Kindly people

Besides, Playas counts with a well-maintained connective inter-county, regional, national and international vial net. On this vial infrastructure exists a good urban transporting system, in addition to the first-order air and maritime transportation. Front the point of view of the economic and competitive activities Salinas also counts with the best infrastructure of Santa Elena Peninsula to lend the corresponding services for commerce and production, supported at the same time, by the establishment of micro-firms that boost the economic growth among all existing social classes. Peninsular Tourist Free Zone.This project will be benefit from, in a medium term, of the planning to establish a Free Zone of Tourist Services that will be in charged to promote and develop the provision of services in tourist activities. These will destine to receptive tourism and in a manner to subside the national tourism. The Free Zone will allow an ample development for facilities and access with the current ones, such as: basic services, air transportation, land and maritime transportation, telecommunication, internet, etc. Where the interior and exterior infrastructure will accomplish with the designs, technical characteristics, and standards determinate to be effective to execute jointly, as well as, strictly perform the environmental and conservation standards. The services that will be established in the free zone they will accomplish with the requirements of the regulating tourist organization. Those activities to be established are: Travel Agencies of receptive tourism Travel Agencies of national tourism Operator of Recreational Tourism Aquatic Sports Ecotourism Sport Fishing Food and Beverage Establishments Tourism Information Handicrafts and Gifts Accommodation Establishments The projects benefits and advantages that will be provided under the roof of the Free Zone Law will encourage major efforts of competition and it will generate a high rate of jobs and to boost the skill labor in this zone of Ecuador. This will also encourage the national and foreign investment, focusing to a sustained and sound development. Accommodation System Offers and Recreational Sites in Guayas Province (3.5 Million Inhabitants) Guayas Province accounts with 291 hotels resources of which 47 corresponded to real hotels and the rest corresponded to lodging establishments and services. 50.2% of hotels are considered of first category and luxury and 49.8% of establishments belonging to second, third and forth categories. The increasing tourism facilities demand is very widely noticed, not only during the beach time on weekends and holidays, but during the whole year there are a big number of visitors from different zones of the country and besides foreign visitors with limited numbers due to the lack of hotel infrastructure and recreational center or sites of first categories. The coastal rim of Guayas and Santa Elena provinces has became the main tourism zone of the country during the whole year. This developing is based and having as principal actor the

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private and free enterprises whos lately have constructed three new clubs with unique particularity. The creation of these large clubs will increase the attraction for new thousand of tourism, including common citizens, who will not have to spend vacations in other countries, but to stay in exotic places near their domiciles in Guayaquil. In the same zone currently are operating the following tourist attractiveness: San Vicente thermal Bath, Salango Petrified Forest, Machalilla National Park (Indian museum), Isla de la Plata (Silver Island), Ensenada de Ayangue, Olon Beaches, Montaa Surfing, besides there are many Indian archeological centers like Guangala, Real Alto, Las Vegas, Chorrera and Valdivia cultures. Summarizing, our named Costa Azul Zone (Blue Coast) counts with ideal beaches complemented by the beauty of Pacific ocean and the presence of traditionally people where flourished our ancient Indian cultures full identified with Ecuadorian roots, as well the surging of resorting towns and cities of great urban development. The Ecuadorian Costa Azul (Blue Coast Rim) belonging to Santa Elena and Guayas Provinces offers a good number of enchanted and fascinating places that assures rest and rejoice of all kind of visitors. From the geographical point of view, there many beach towns around this area offering a wide variety of entertainment to move and change of sites easily and close each other, and putting in practice any initiatives for visitors from sport fishing, surfing, yachting, tennis, scuba, etc. Naming these towns from the southeast: Posorja, Data de Posorja, Data de Villamil, Chanduy, Ancon, Punta Carnero, Salinas (Biggest Developing Beach Resort), La Libertad, Ballenita, Punta Blanca, Capaes, and San Pablo. Facing further north there are: Palmar, Ayangue, San Pedro, Valdivia, Manglaralto, Montaita y Olon, all this sites are located right on the beaches are linked together by the highway called Ruta del Sol (Sun Route). The called blue coast, in the circuit from Salinas to Puerto Lopez, in Manabi province, offers an attractive variety of tourist wealth, to known and visiting it to meet with emotions, peace, sun, handicrafts, and walking by beaches and woods, extreme sports, observation of birds and whales, dawn and warm sandbank. Without doubts this zone represents an enormous tourist potential for our Blue Coast province of Guayas. This means an increasing demand of dozens of thousands of potential visitors and potential buyers for the villas of our housing project that definitely assured the repayment or return of capital investment in project like proposed by (name of the company) International Seafront.- In our project we offer the construction of a vehicular and pedestrian, of restricted use, establishing regulation for the opening of commercial establishments. All will be organized for the maintenance of seafront itself. This project will count with several complementary services and precise co-projects, such as handicraft market; areas of skating, biking, walking, etc. Besides, areas of parking, rest rooms, showers and playing sports on beaches. This seafront will be constructed under a concept of an open big commercial mall, this means the development of other services in encircled areas such as the following: Ecuadorian Tropical Garden.- Additionally, artificial lakes will be constructed in an area of 2.5 hectare, including summing pools with mechanically generated-waves and toboggans, forming a great familiar recreational center. In another area of 12.5 hectares, with the technical advisory and patronage of Tropical Garden of Miami, Florida, we are going to construct a large garden, including the their seeds and our rich native flora seeds and a mini zoo with the native zone fauna.

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Center of Art and Culture.- This type of center will be also constructed where national and international festivals for special series of performances as the well-known in Via del Mar and Acapulco. Complementary and related service to these activities, are going to be patronage and perform, such as movies, exhibits, conventions, seminars, etc. Playas-Engabaos beaches, although the infrastructure works to be performed and carry out to develop this project, and special care will be kept to preserve the natural status of the beaches by definition are geometric places to equilibrate the earth and ocean, in order to preserve this equilibrium, it is necessary to preserve the beach under the best natural conditions. It is necessary to point out that the sea does not supply solids, this concept is important because the following reasons: This Playas-Engabaos project will constitute the future main tourist center of Ecuador, and it has gained by its natural beauty of the beaches, under these conditions and circumstances, the project considers, under the single concept that the whole city of Playas-Engabao, includes the seaside resort, the seafront and the beach. The projects technical team force is under periodically observation of the affected beach in this project and to accomplish these tasks, the Projects Task Force Team will have a sea environment quality laboratory, equipped to undertake the physical, chemical and biological analysis on sediments and water, as well as the needed field instrumentation. Also, it will have an electronic and instrumentation workshop which, in addition, will provide services to other units of the city of Playas-Engabao. The Projects main consideration is the creation of a Center of Studies to aim at developing long term statistical analysis on marine climate (waves and wind). It also applies numerical models of marine hydrodynamics to the studies on beaches and port coastal engineering. Knowledge of the wave climate is a prerequisite in most of the studies of the coastal areas, since it is the main agent in the evolving dynamics of the coast and a key action to be considered in the regeneration in coastal structures and beaches. The objective of this Center is to maintain the relative information as up to date as possible in the techniques for wave characterization, needed for the different types of studies, as well as to contribute to the development of this discipline as much as possible. The Project will consider the numerical models of marine hydrodynamics are today worldwide and in certain areas a highly competitive tool in comparison to the physical models from the point of view of cost, execution time, versatility and quality of results. The Projects Task Force Team will make extensive use of models of wave transformation in coastal zones (refraction, refraction-diffraction), wave disturbance within the beach and long wave analysis. Coastal Studies The basic goal of the Coastal Studies to be consider in this Project is to support project himself and others one for the defense and protection of beaches. This is accomplished by a direct collaboration in the design of these projects and the maintenance of the basic information needed. The Project also will try to keep our country up to date in the techniques used in this field. This is going to be a pioneer work and studies in the protection of its coastline and in the regeneration of beaches, this activity is an extraordinarily young branch of civil engineering, which requires a significant effort in basic and applied research. The activity of this sector of the Project consists of four basic areas: Coastal dynamics studies, whose aim is to progress in the knowledge of the transport processes which lead to beach evolution. Beach regeneration projects and management techniques. Monitoring of regeneration projects with topographical and bathymetric measurement campaigns and evolution analysis. Advanced measuring in the marine environment and setup of new equipment and systems for coastal monitoring.

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To undertake this work, this part of the Project will need to have, among other tools, a data bank with aerial photographs of the Ecuadorian coast and of the shoreline position in sandy coasts from 1970 till the present. It also is going to look for software for the calculation of sediment transport along the shore and the evolution of the shore in its plan-shape and profile under wave action. In the future, a special effort is going made within the part to apply Geographical Information Systems concepts and tools in the coastal area. A good part of the activity of the Project will depend on the collection of data in the field. For this purpose the Center of Studies will have boats, sounding equipment and various field instruments, as well as a workshop for sedimentological analysis. (Company name) backed under legal contract by (Constructing company), has proposed to the Municipality of Playas-Engabao to provide all the technical support and environmental impact study of this project that allow the protection and natural conservation of the affected virgin beach considered in this project, which such projection that goes further: To convert PlayasEngabao beaches, into beaches that will be rated or classified ones as Blue Flag which is granted by World Organization of Tourism (WOT). This distinction is granted to beaches basis on mainly for Excellent Quality of the waters, good infrastructure, appropriated services, a correct environmental management and control of the natural conditions and fundamentally a sustainable maintenance program of the beach, and not only a cleaning and recollection of waste system, but a hygienic and oxygenation process of dunes. Besides, The Municipal Government of Playas-Engabaos authorities leading by its Major is agreed and engaged in developing jointly with (Promoting Company name) this project of control and protection of the beaches and the construction of the new malecon, with a global vision considering the following: The control and protection of the beach of the city of Playas-Engabao must be complemented with the protection of the seafront, not only because they should form a sole concept, but fundamentally to constitute the best financial feasibility, based in on tax services, to be collect for the infrastructural civil works to be done by such urban construction development. This will allow recuperating an important segment of the credit amortization obtained for the construction of the same. To reinforced and assure this feasibility, a Municipal concession contract will be celebrated between the Municipality of Playas-Engabao and the promoting firm of this project. The legal tool to frame regulating between the private investment sector, in the present case the company (name of promoting company), and Municipality of Playas-Engabao is the concession which also will assure the returns of the investment through the collection of municipal taxes. This type of contract give (promoting company name), the possibility and security to managed these aforementioned fundamental aspect in the concession. This has been our proposal to the Municipal Government of Playas-Engabao which has been also accepted by the authorities of the Municipality. The Economy of Project The tourism movement is of great importance to the local economy. With 150,000 Visitors yearly and with earnings of around $3 million. Tourism together in action with housing development is the major foreign currency earner and major provider of employment. There is no doubt that the tourism and housing development industries have contributed enormously to the economy of the Republic of Ecuador and to the standard of living of the people. To cater for this increase in tourists and housing development in Playas-Engabao, the demand of number of hotels and hosing need to shoot up to provide comfort and firs-class

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accommodations and medium-class income villas to supply the current demand period. The majority of hotels and hosing development have been built on the coast of Playas - Data because the main attraction for tourists in Playas - Engabao is the sea and its beaches. The Housing Development and its complementary constructing development is located along and in front of the beach of Playas- Engabao covering 1,800 hectares (18 Millions square meters), the center of the resort, and account with the fact that the most beautiful and scenic beaches are to be found around at those locations. As the number of arrivals of tourists and new inhabitants are expected to increase steadily over the next few years there is considerable pressure from property developers to obtain permission from government for the construction of more hotels and housing development around the coastline. In view of the fact that due to an increase in numbers of visitors and the floating population, more and more people spend time at the seaside on weekends and holidays, there is an increased demand by the public for more public beaches and better amenities on site and, of course, new construction of villas. This obviously conflicts with the demand from property developers for more sea frontage. In our case, the project account with its own housing development and territory. The further development of tourism will require on behalf of government new policies that can reconcile the legitimate demands of the population for more leisure amenities and that of the tourism and housing construction development industries. In that perspective, the government is encouraging the development of inland tourism and eco-tourism. The idea is to encourage tourists to visit the interior of the Playas-Engabao beaches and its sites. Etanolsa S.A. , Promoting Company. The projects promoting company is owned mostly by (names of partners) who are well-known among local commercial, social, and banking circles. Mr. (name of president) is its president and CEO who accounts with a vast experience in the construction field. Housing Construction Development: The company is willing and ready start preparing the movement of lands and soils covering 18 Millions square meters and at the same time planning sales packages for the villas that it including sales tours in Playas-Engabao beaches and it is being trialed for a further year before being commercially marketed. The various natives of the communities have been involved in consultation and discussion about the type of housing construction development and involvement that they want. Infrastructure needed along the way (toilets, water supply, and accommodation) has been carefully planned . Two different drivers, each with their own vehicle, have been contracted for the tours. The vehicles are comfortable carry 8-14 domestic visitors and 50 for international tourists. How to Develop the Product : The native communities participating in the tour have identified the features of the environment and their culture, visiting the local museums, that they want to present to tourists, and the individuals who are best able to act as guides. Some dance performances are being developed for tourists. Initially, much of this participation is supported by the projects promoting companys payments. All the participants are receiving guidance and training, though much of this is on-the-job, given the remoteness of the communities from our own training force team. Some key native people with experience In the sales industry have been involved from the start in providing advice and training others. A separate commercial organization is being established to operate the tour for selling the villas, with involvement of the participating communities. The Sales tour will be originally planned as a

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single five day event starting in Playas to Engabao and returning to Playas, with a maximum of 50 kilometers being traveled each day. Networking : Travel Agencies based mainly in Guayaquil, will coordinates the sales tours and act as affiliated company works in co-operation with the Ecuadorian Tourism Association, and therefore the promoting construction company has good links with the mainstream tourist industry and potential buyers to become inhabitants of the covered area for this project. There is a great deal of industry support for the development of native tourism in the Playas-Engabao region. There will be good attraction and success in attracting corporate sponsorship for some components of the infrastructure being provided for the sales tour. The Sales tour, starting at Playas, will include use of mainstream accommodation and restaurant facilities along the route. However, it is expected that in time more of the accommodation will be provided by the individual communities. Marketing : The Sales tour for the villas is seen as appealing to the international market, as well as to educational markets in Ecuador (including universities, mining companies, big corporations, different labor associations and others). Some markets may prefer the shorter 3 day tours rather than the full five day tour. Problems that have been encountered : The main problem has been in securing funding support over the length of time that it has taken to develop the tour. It was necessary to proceed at a pace which suited the communities involved, and to ensure that everything was fully tested before marketing it. We are enthusiastic in marketing the tours with the funds available in the international private sector which is the main aim of this project. Future Prospects : The development of housing construction is seen as only one component of each community's tourism involvement. Individual community groups are seen as being free to pursue their own tourism operations on a day-to-day basis and in conjunction with other (mainstream) tour operators, as they gain skills and confidence. Other community groups are expressing interest and wanting to become participants in the sales tour. However, there is a practical limit on manageable numbers. It is possible that other tours may be developed with different communities, in due course. Financial Scenario of Project.Total Loan Amount: US$460 Million Dollars Term: 25 years, with 3 years of Grace Period Interest: 5% Annually, with 3 years of grace period Guarantee: The Projects Promoting company put as collateral the property covering 18 Millions of square meters appraised at US$20 dollars before the added cost of investment totaling US$180 Millions dollars. Additionally, the Royalty, Municipality of Playas-Engabaos Concession on the use and services of the Beach and its Seafront during 25 years. Distribution of Loan: US$10 Million for the Construction of the Playas-Engabaos Seafront; US$10 Millions for the preparation of land and soils. The construction of the 45,000 villas will be made by stages of 5,000 villas totaling US$50 Million per each one, until reaching the total construction of the 45,000 or 9 stages.

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Prepared by Wellington G. Gallardo, Ciudadela. Los Esteros, Manzana 29, Villa 4, tel.(593 4)2523616, e-mail: finangallardo@hotmail.com, Guayaquil, Ecuador.

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