Sacyr : Concesiones enters Paraguay with a project amounting to 1.47 billion dollars

24/10/2016

It is the first roadway project under the Paraguay concession scheme

Sacyr, through its Sacyr Concesiones division, is entering Paraguay with the award of a contract for the construction and operation of 'Road 2' (between Asunción and Coronel Oviedo) and 'Road 7' (between Coronel Oviedo and Caaguazú), with a planned investment in construction amounting to 520 million dollars and a revenue backlog of 1.47 billion dollars in a 30-year concession.

This is the first roadway project under the new APP Law of Paraguay [APP: Public-Private Alliance], and the development of this project is vital to the country's growth: this is the most important corridor of the country, where 70% of the country's economic activity is concentrated.

The contract encompasses 170 km of roadways that will be widened, improved, operated, and maintained by the concessionaire, including the construction of 5 by-passes between the cities of Asunción and Caaguazú. Maintenance of the corridor will substantially improve the standards of quality and will have an impact on greater driver safety and comfort.

The awarded consortium, led by Sacyr Concesiones, together with Mota Engil and Ocho A, combines proven experience and prestige on roadway infrastructure projects, as well as considerable knowledge of the local market. The call for tenders issued by the Ministry of Public Works and Communications received major interest from national and international companies, 13 of which were pre-qualified in the final phase to carry out this project.

Highlights of the main actions that will be carried out include the following

• Upgrading work: improvements from km 13 to km 34 and from km 39 to km 40.5: a total length of 22.5 km.
• Widening and expansion works: Km 34 (start of the Ypacaraí by-pass) to km 183 (start of the Tape Porá section): a total length of 149 km.
• Maintenance and operation: Km 33 (start of the Ypacaraí by-pass) to km 183 (start of the Tape Porá section): a total length of 149 Km.
• By-passes included in the project: Ypacaraí, Caacupé, Itacurubí de la Cordillera, San José de los Arroyos, and Coronel Oviedo.
• Viaducts and traffic circles:
  • 1 traffic circle with a two-level interchange in Coronel Oviedo
  • 2 viaducts in Caaguazú.
  • 1 'trumpet' type interchange in Caaguazú

The MOPC, as the tenderer of the project, will have access to the consortium's accounts and will supervise compliance with the contract.

Sacyr Concesiones continues with a business strategy that is focused on the development of projects in Latin America, thereby showing its firm commitment to the development of Paraguay's infrastructures. It is confident that, after the success of this first package of APP projects, the trend will continue with upcoming infrastructure tenders by the country's government.

Sacyr holds 7th place in the ranking of managers of transport infrastructure concessions in the world of Public Works Financing (PWF), with 36 distributed assets in nine countries (Spain, Portugal, Chile, Colombia, Italy, Ireland, Peru, Paraguay, and Uruguay), including the sectors of freeways (over 3800 kilometers), transport hubs, hospitals (over 2200 beds), and a subway line.

Over the course of 20 years in business, Sacyr Concesiones has demonstrated its experience and technical expertise, along with its financial solvency with global investment amounting to 25,000 million euros. A specialist in greenfield projects in which it designs, finances, builds, and manages assets.