Barros & Errázuriz (“B&E”) advised Kaufmann Group and Andes Motor in the public tender for the provision of electric buses to the Public Transport System of the Province of Santiago and the municipalities of San Bernardo and Puente Alto (the “System”). As a result of the public tender, Kaufmann and Andes Motor were awarded through their special purpose company Suministradora de Buses K Cuatro SpA (the “Supplier”) with the provision of 992 electric buses to the System – the largest electric fleet in the world outside of China – (the “Project”).

The advisory considered the public tender and awarding aspects of the Project, as per the drafting and negotiation of all the project agreements necessary for the supply and maintenance of the buses, including a bus purchase agreement with Foton, the bus manufacturer, and a warranty agreement and extended warranty agreement with CATL, the biggest batteries manufacturer in the world and manufacturer of the buses’ electric batteries. In a later stage, B&E advised Kaufmann and Andes Motor in the association with third parties, first with Enel X SpA and later with Infrabridge, who acquired Enel X’s 100% stake in the Project.

In relation to the financing of the Project, on 2022, on a first stage, B&E advised Andes Motor in the drafting and negotiation of a financing agreement with Banco Santander and Banco de Chile,  for purposes of financing the letters of credit for the import of the electric buses.

On a second stage of the financing of the Project, B&E acted as local counsel of the Supplier in the granting of a long-term financing by International Finance Corporation (“IFC”), as a member of the World Bank Group, Inter-American Investment Corporation (“IDB”) and Banco del Estado de Chile, to finance the purchase of the 992 electric buses. The advisory contemplated the negotiation and closing of the Chilean financing documents, which included among others, the security package, project documents, certain sponsors agreements and the local financing documentation required for the disbursement of the loans.