Mexican construction company ICA has signed a 30-year concession agreement with the Mexican government for a bypass construction and highway maintenance in north-west and central Mexico valued at Ps. 1.9 billion (€100 million ; $130 million).
The concession agreement calls for ICA subsidiary Libramiento ICA La Piedad to construct, operate, exploit, conserve and maintain the 21 kilometer La Piedad bypass. Construction is expected to last 22 months and the term of the operation concession is 30 years.
The bypass will unify trucking corridors between Mexico City in the south and Ciudad Juarez in the north. It is also expected to relieve congestion in the city of La Piedad resulting from long-haul truck traffic, ICA said in a statement.
The agreement also includes the modernisation of 39 kilometers of federal highway Mex-110 and 7 kilometers of Mex-90 in the central Mexico state of Guanajuato and the northwest Mexican state of Michoacan, respectively.
Banco Santander is arranging financing for the project, which is ICA’s seventh highway project in Mexico. It is developing two other highways as public-private partnerhips and operates four more under concession agreements with the Ministry of Communications and Transportation.