Marina Martín Garcia

Isla Martin Garcia is founded on a rock outcrop in the Rio de la Plata which is a natural protected area between Argentina and Uruguay. Due to the extension of the runway at the local airport, wetlands between Isla Timoteo Dominguez and Isla Martin Garcia developed during the last decades. The bay, where the old port was located, was loaded with sediment. After the waters between the two islands sedimented, Isla Hercules is formed and a channel is created. For the location of the marina, three possible options are selected: at the pier, south of Isla Hercules and in the sedimented bay north of Isla Martin Garcia. By using a multi criteria analysis, a marina at the pier is chosen as the best option because of its small dredging area and minor environmental impact. In consultation with the consultative authorities, a marina at the bay is chosen as the elaborated alternative. The recovery of the old situation in which the marina is located in the bay is the main reason for this choice.Implementation of the marina at Isla Martin Garcia involves cooperation between two parties: the government and a second investor. The government is responsible for the island, and a certain amount of liquidity is required to boost tourism on the island. A second party, like a private investor, is introduced for the maintenance and exploration of the project. This cooperation needs to invest 22.9 million dollars; this includes the 16.4 million dollars for the government and 6.5 million dollars for the second party. Without involving an external investor the internal rate of return (IRR) is 1.77% which is very low. When involving a private investor the IRR increases, the external investor receives an IRR of 7.71 % over the entire lifetime of the marina.