NAME OF PROJECT: BEAUTIFUL PLAYAS-ENGABO MAJOR HOUSING PROJECT IN

THE BEST SECOND WEATHER IN THE WORLD, 2015

AMOUNT TO BE LOANED: US$ 250 million American Dollars.
PURPOSE: To Construct 8,000 low-to-medium income people houses, in stages of 1,000 houses
each. The Contracts will be celebrated between the parties, namely: the projects promoters, the
Constructors, and issuer of the Bank Guarantee, and a qualified international financial agency.
INTEREST: LIBOR + 1 annually.
TERM: 20 years with a 2-years grace period.
GUARANTEE: a) A pool of mortgage totaling $480 Million Dollars of the 8.000 villas,
b) A portfolio of 1,920,000 bonds with a face value of US$250.00 each to be paid within a 20years term on the monthly basis, totaling US$480,000,000 Dollars,
c) Corporative Bonds and Bills of Exchange totaling US$480 Million Dollar issued by the Projects
Constructor
d) Bank Guarantee of US$25 Million Dollars to be placed in the same bank account where the
investors will place the monies to finance the development of the Brizas del Mar until its full
accomplishment.
PROJECT ORIGIN: Ecuadorians are suffering a 2.6 million deficit of houses which an
increasinggrowth of 50,000 houses a year. The main projects purpose is to cover only the
increasing growth rate 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
US$6,000 per each of the 8,000 housing units, totaling US$48,000,000. All Government bonds
are cash-backed.
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 circles in Ecuador.
FINANCING PLAN: the total cost of construction per house, includes land and the infrastructure
works is US$40,000 American Dollars. The opportunity cost on raw materials, such as steel, iron
and cement are guaranteed by future purchasing contracts with the localcement 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 projects guarantee that is to say: a) A pool of 8,000 mortgages totaling US$480 Million
Dollars b) A portfolio of 1,920,000 bonds with a face value of US$250.00 each to be paid within a
20-years term on the monthly basis, totaling US$480,000,000 Dollars, and c) Corporative Bonds
and Bills of Exchange totaling US$480 Million Dollar issued by the Projects Constructor; all of
them totaling US$1,440,000,000 will be placed in an international prime bank issuing the
corresponding Bank Guarantee of US$25 Million Dollars, in this sense the bank guarantee is autorolling on benefit of the projects promoter; then a pre-advise bank engagement will be issued
by a prime bank of the international lender to fund the complete construction project in Ecuador.
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The Funds Administrator or Trustee will manage the funds to undertake for developing the entire
housing project in 8 stages of 1,000 houses each, and per each constructing firm in Ecuador.
Financing Scenario per villa:
Total Sale Cost per each housing unit: US$60,000 Dollars
Term: 20 years, with 2 of grace period
Monthly Payment: US$250.00
Down Payment: US$500.00 Dollars
OTHERS PROJECTS OBJECTIVES.Besides, the current projects objective is focused in contributing to develop a real
housingmarket in Ecuador, to help to overcome the economic standstill that Ecuador is facing at
this moment. Housing construction is one of sectors that generate 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 improves 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
toinformal labor of our economy.
This project will benefit around 40,000 people that belong 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 three guaranties to be used to develop this project and
the corresponding financial platform where all financial instruments will be placed in the
corresponding banks.
A.- LANDLORDS AND CONSTRUCTORS.We are gathering 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 will provide with houses designing drawing and the municipalitiespermits
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 wills be
guarantee by a prime banks stating the following:
.- Construction starting date fixed by the promoter.
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.- The assurance to count with funds and necessary financing instruments to finish the
allconstruction 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 constitutes
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 duringthe
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
aPreferred Client under a Real State Trust, which will include the following parties: The
landlord, the constructor, the 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
allowsthe proper development of this project in stages of a 1,000 houses and totaling 8,000
villas, under the following requirements:
1.- A reasonable economic down payment equivalent to US$500. 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 basicservices
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 20 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.- Exclusive advantage financial scenario: US$500.00 minimum down payment, 20 years term,
US$250.00 monthly payment.
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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 realvision 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.
2.3.- PROJECTS RISK IN BORROWING MONEY.
The projects risk are duly limited and controlled for the following reasons: 100% of the houses
total cost is backed by 3 three types of guarantees aforementioned totaling US$1,440,000,000.
Another important factor to mention related to our projects risk in borrowing money is that there
is no exchange risk due that Ecuador has a dollarized monetized system, using the American
Dollar as our currency.
TOTAL CONSTRUCTION HOUSE PRICE PER UNITS: US$40,000.00 DOLLARS
A.- US$500.00 down payment to cover only the initial financing costs
B.- Balance will be paid in a monthly basis at a rate of US$260.00, including fixed interest during
the next 20 years.
.- BENEFICIARYS SELECTION
The projects manager, FINANCIERA DE TIERRAS DEL ECUADOR S.A.s 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 10,000 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 and all 5,000 employees and workers under the legal labor contract
under the SEA-Santa Elena Agreement.
.- DEBT ADMINISTRATION.The projects trustee (Bonds/mortgage/portfolio Trustee) will be in charge of collecting all the
funds generated by subsidy construction bonds, beneficiary down payments, rolling bank
international guarantee; and all monthly amortization totaling US$480 million Dollars to be
collected during 20 years. The Trustee also will be responsible for semi annually or annual
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
complete 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: Libor + 1%
Total amount to be loaned: $40,000.00
Down Payment: $500.00
Total Balance to be paid: US$250.00 during 240 months for the next 20 years
Trustee administration fees, including Portfolio Manager: 0.1% per projects registration.
.- FINANCING PROJECTS COST.Total amount to be financed per house: $40,000 Dollars, include 70 square meters of
construction, 200 square meters lot of land, and also including the infrastructure works for the
complete project.
Trustees administration fee 0.1%: $320.00*
International Lending Interest: Labor + 1%.
.- HOUSING SALES COSTS.7.1.- COST PER SQUARE METER OF LAND PER EACH HOUSE.
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Per meter
US$15.00

200 sq. meter

US$3,000.00

TOTAL COST
US$3,000.00

7.2.- COST PER CONSTRUCTION METER.

Per Meter
70 sq. meters
Total Cost
US$400.00
US$28,000.00
US$28,000.00

7.3.- CONSTRUCTIN COST AND LAND COST.Land

Construction
Total Cost
US$3,000.00
US$28,000
US$31,000.00
Total 20,000 Houses
Land
Construction
US$24,000,000. US$218,000,000.0
00
0

TOTAL
US$332,000,000
.00

8,000 HOUSES
US$24,000,000
8,000 Houses
US$224,000,00
0
8,000 Houses
US$218,000,00
0
US$242,000,00
0

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 of $32,000.00 per each house that
means $9,600.00 dollars, considered in the following chart:
Cost per house
Land Cost
Construction Cost
30% Urbanization
Total Cost per 8,000
Units

US$32,000.00
US$3,000.00
US$28,000.00
US$9,600.00
US$6,080,000.00

.- Financing Repayment Program: each and all 8,000 housing units will be paid on a monthly
basis. There are 240 monthly payments backed by the issuance of 240 bonds with a face value of
US$250.00 and a total series of 1, 920,000 bonds into a portfolio with a total value of
US$480,000,000. In addition, there is another portfolio / mortgage / poll corresponding of sales of
8.000 villas at a fixed price US$60,000.00 each and total of US$480,000,000.00, the
corresponding digits are shown in the chart below:
Monthly payments of the Bonds
No. of
US$250.00 Value
Bonds
Per One
240
US$60,000
House
8,000
1,920,000
US$480,000,000
Houses

.- DESCRIPTION OF THE URBANIZATION

A.- LOCATION
The lands are located to the north of General Villamil-Playas city, crossing the road named
Playas-Engabao city. These lands provide facilities the urban passenger public transportation as
well as the direct private driving transportation to these sites. It only takes 10 minutes from
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Playas downtown by urban public and spacious bus terminal which will be constructed to
facilitate all the services related with urban publictransportation. Besides, the project includes
enough and ad equated parking places transportation per each housing units.
Other lands are located at Engabao, Parrish of Playas Canton with 100 hectares or 1,000,000
sq. meters.
B.- LOCAL STREETS.The urbanization will include the construction system of paved 8 meters-width streets that will
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.
C.- 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 covering
300 hectares. Besides, there are 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.
.- CHART OF USES OF SOIL.TOTAL AREA FOR CONSTRUCTING
HOUSES:
GREEN AREAS 30%:
HOUSING AREA TO BE SOLD:
COMMERCIAL AREA TO BE SOLD:

3,000,000 square meters

900,000 square meters
3,000,000 square meters
100,000 square meters

.- DENSITY.In our project we are promoting a Housing Construction Using Simple Technology: "LowCostHousing" for short we were able to offer construction at prices up to 50 percent lower than
thegoing 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
municipaladministration on planning and implementing low-cost housing programs, trains and
upgradeslocal human resources, and promotes small- and medium-sized construction
companies.Offering know-how and services in international markets on a commercial basis, is
responsiblefor 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, but good quality and durable
construction,"explains Eng. Andres Carbo, 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 20-year construction loans. The Promoting firm administration is providing prefinancing. "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, ecologicaland
social development in a globalized world. Our main objective is to improve people's
livingconditions on a sustainable basis, framed under the following terms and conditions:
POTENTIALITY OF THE CITY OF PLAYAS - ENGABAO
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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 due that the city of Guayaquil is over populated with a high rate of lack of
housing units ownership and with relative small availability of land for housing development; and
in addition we are able 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.
Playas - Engabao is been launched with this project to a national level and international
increasing scale. This is due to that the Pacific Rim of Ecuador is also being transforming in the
most important international commercial zone. 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.
Our 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, this constitutes 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:
Sun and sea Natural Atmosphere, Modern city Social prestige, Kindly people, Restaurants Hotels,
Aquatic sports, etc. Besides, Playas counts with a well-maintained connective inter-county,
regional, national and international vial net. Front the point of view of the economic and
competitive activities Playas also counts with the best infrastructure near the 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 intourist
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 thecurrent
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:
Coastal Studies

The basic goal of the Coastal Studies to be consider in this Project is to support project itself 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 there
generation 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.
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
Accommodations and medium-class income villas to supply the current demand period. The
majority of hotels and housing development have been built along on the coast of Playas Data
high ways because the main attraction for tourists in Playas - Engabao is the sea and its
beaches. Thought the Housing Development and its complementary constructing development
is located along and infront 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
propertydevelopers 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.
And finally, the Municipality of Playas by its Council declared last year this zone where this
housing project is going to be developed as a privilege tourism territory, thus increasing the
value added price to each square meter of land up to thee folds its current price.
Financiera de Tierras del Ecuador S.A., the projects promoting company is owned mostly by
(names of partners) who are well-known among local commercial, social, and banking circles. Mr.
Wellington G. Gallardo, President and CEO who accounts with a vast experience in the
construction field, well-known in local commercial/business circles.
Housing Construction Development: Our Company is willing and ready to start preparing the
movement of lands and soils covering 300 hectares 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
8

(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
comfortablecarry 8-14 domestic visitors and international tourists.
Complementary investments are been executed in this same area such as Karibao Proyect which is an
acronym for "The Caribbean in Engabao." This real estate development is unique in Ecuador, where their
promotors have paired up the Pacific with the Caribbean in an area of unspoiled beaches located near
Engabao, an hours drive from Guayaquil. This is more than a real estate project: it is the birth of a new coastal
town that will have an oceanfront of golden beaches and a lagoon of clear turquoise waters. The complex
features an optimized traffic circulation plan where green spaces and landscaping predominate. Additionally,
this project will harmonized the everyday life of Guayas with the relaxed lifestyle of a Caribbean island, with all
the comforts of a European or American town: restaurants, shops, bakeries, a pharmacy, supermarket, gas
station, spa, etc., representing a very high-quality lifestyle developed for those who appreciate all the comforts
of modern life while being able to enjoy an exclusive environment of lights, colors and scents. Estimated
potential investment is around US$1.4 Billion Dollars
Prepared by Wellington G. Gallardo, Ciudadela. Los Esteros, Manzana 29, Villa 4, tel.
(5934)2422511, Playas Phone: (5934) 2764042, Cel. Phone (5939) 999888605, e-mail:
wellybanana@hotmail.com, Guayaquil, Ecuador.