Sacyr SA

07/02/2019 | Press release | Distributed by Public on 07/02/2019 04:41

The consortium Rutas del Este, led by Sacyr, closes the financing of Paraguay’s routes 2 and 7

02/07/2019

Adjudication

• The project, which improves and expands a strategic corridor of 150 kilometers, will be financed with 440 million euros. It is the first road project under the public-private partnership formula.



The consortium Rutas del Este has successfully closed the financing of Routes 2 and 7 for more than 440 million euros (500 million dollars), with the participation of international banks.

The funds obtained will be used in the twinning of the two main roads in the country: Route 2, between the capital, Asunción, and Coronel Oviedo; and Route 7, between Coronel Oviedo and Caaguazú.

Rutas del Este, integrated by Sacyr (60%) and the Paraguayan company Ocho A (40%), has already defined the agreements for the final closure of the project, which will be financed by the Inter-American Development Bank (IDB Invest) and Goldman Sachs, in addition to own contributions from shareholders, of 70 million euros (80 million dollars).

The contract includes 149.5 km of the National Routes RN-2 'Mariscal José Félix Estigarribia' and RN-7 'José Gaspar Rodríguez de Francia'. These roads will be duplicated, improved, operated and maintained by the concessionaire.

The contract, which includes the construction of five variants (37.5 km), will relieve junctions from urban areas and will seek to reduce the current cost for the benefit of users. All within the framework of the Public-Private Partnership Agreement (PPP), with the Ministry of Public Works and Communications (MOPC).

The construction and expansion of Routes 2 and 7 is the first road project under the PPP law of Paraguay. Its development is essential for the growth of the country, as this is the most important corridor in Paraguay and consolidates 70% of economic activity.

Also, it is expected that, as indicated in the Bidding Terms and Conditions of the Project, the MOPC will begin the works planned within 30 days.