ExpertiseAdvisor Abogados advises construction company in Ecuador
Juan Manuel Lalama, junior partner at MSI’s Ecuador law member ExpertiseAdvisor Abogados advised one of the biggest construction companies named Acería del Ecuador C.A. Adelca, which is building the largest steel production plant of the country in the city of Milagro.
Aceria del Ecuador C.A. Adelca aims to produce 100% of the raw material needed for the production of its commodities. The new plant will generate at least 800 jobs in the city and 3,000 jobs around the country.
ExpertiseAdvisor Abogados was responsible for acquiring all the construction permissions, drafting and reviewing contracts with the equipment and services providers. Furthermore, ExpertiseAdvisor Abogados conducted negotiations with the government to obtain an energy connection and a provision contract considering that Aceria del Ecuador C.A. Adelca is one of the biggest energy consumers (it consumes more energy than the city of Milagro).
ExpertiseAdvisor Abogados also advised on the execution of a trust to guarantee the loan signed with the IDB, by transferring all property and equipment to this trust, which owns US$ 140,000,000 to ensure the due payments of the loan.
As a result of the investment in the construction of the new steel production plant, Expertiseadvisor Abogados also advised Aceria del Ecuador C.A. Adelca on the negotiation of an investment treaty with the Ministry of Production. In this regard, ExpertiseAdvisor Abogados assisted and advised the client in the negotiation, drafting and signing of the referred investment agreement. This treaty is of great significance since it guarantees tributary stability, which is a required condition for the construction of the new steel production plant financed with a loan from an international organisation.
Expertiseadvisor Abogados regularly advises companies in the construction sector, with clients that are leading companies in the market. This projects is a strong contribution to the development of Ecuador as will ensure long term investments in the future.
