10/14/2019 | Press release | Distributed by Public on 10/14/2019 05:16
• The project has financing from the IDB up to 200 million dollars.
• The financing for this project is the largest private investment ever made in Paraguay.
• The project, which improves and expands a strategic 150 km-corridor, is the first road project under the public-private association formula in the country.
The Rutas del Este consortium, led by Sacyr Concesiones, has issued a bond for 240 million dollars to finance the construction of doubling the size of Routes 2 and 7 in Paraguay.
The issuance was 2.5 times oversubscribed, which shows the solidity of the project and the confidence international investors have in it. The bonds will have an interest of 5% and a 17-year expiration.
Rutas del Este, formed by Sacyr (60%) and the Paraguayan firm Ocho A (40%), also has financing from the Inter-American Development Bank (IDB Invest) up to 200 million dollars to carry out the work, which will require an investment of approximately 520 million dollars.
Construction, operation and maintenance
The project includes 149.5 km of the RN-2 National Routes 'Mariscal José Félix Estigarribia' and RN-7 'José Gaspar Rodríguez de Francia' which will be doubled in size, 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 where 70% of economic activity is concentrated.