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IDEAL only bidder for Pacifico Sur concession

The Mexican infrastructure group has submitted the only bid for a contract to build and operate hundreds of kilometres of roads in Mexico. The project cost is estimated to be $1.2bn.

Mexican infrastructure developer Impulsora para el Desarrollo y el Empleo en América Latina (IDEAL), has effectively won the 30-year concession to construct, operate and maintain hundreds of kilometres of highway in western Mexico.

IDEAL is the only bidder for the concession, according to a spokesperson for the company. Bids opened on 7 April, according to the Mexican government procurement website.

The project involves the construction of two roads totaling 140 kilometres, and operation of 168 kilometres of roads connecting the central-western cities of Guadalajara and Tepic.

According to local news reports, IDEAL proposed a Ps.$14.6 billion (€853 million; $1.2 billion) plan to finance the project, comprised of 74 percent debt, 24 percent equity, and 2 percent from toll revenues.

The IDEAL spokesperson declined to comment on IDEAL’s capital structure for the project, saying the company could not disclose the financial details until the official ruling on the concession had been given.

Other parties that previously expressed interest in the project included OHL Concesiones México, México Constructora Industrial, and Mexicana de Global Vía Infraestructuras, according to the procurement website.

The project was previously part of the FARAC II road concession, which was canceled in 2009. Under the original FARAC II proposition, the concession also included a set of roads known as the Pacifico Norte. 

IDEAL focuses on development of roads, water treatment, energy and social infrastructure projects. Until 2005, it was part of Grupo Financiero Inbursa, the holding company of Mexican billionaire Carlos Slim.

IDEAL has traded on the Mexican Stock Exchange since splitting from Inbursa. Shares were last trading at Ps.$19.52.