Sacyr closes on $87.2m for Uruguay’s first road PPP

The project, awarded in 2015, will see three years of construction followed by 20 years of maintenance over 179km of roadway.

Sacyr Concesiones and the infrastructure debt fund for Latin American development bank CAF have closed on $87.2 million in financing for Uruguay’s first road PPP.

The project, which was awarded to a Sacyr-led consortium in November 2015, includes the reconstruction and maintenance of 179km of roadway on Route 21, which runs from Nueva Palmira to Mercedes, in the south-west of the country. It will see the construction of the 8.5km Nueva Palmira bypass as well as the conversion of 121.75km of roadway from a single carriageway to a dual carriageway.

The group will be charged with maintaining the two stretches of highway for 24 years, with total investment in the project coming to $160 million. The project includes a three-year rehabilitation period followed by a 20-year operation and maintenance concession.

The consortium carrying out the project comprises Sacyr Concesiones and Sacyr Construccion, which hold 43 percent and 8 percent of shares respectively, and Montevideo-based Grinor, which holds the remaining 49 percent. Uruguay’s Ministry of Transport and Public Works awarded the group the project in November 2015.

Sacyr, based in Spain, has been active in the Latin American PPP market. Last month, the firm reached a $223 million deal to renovate a 91.5km roadway in Mexico, its first concession in the country. And in April, it was awarded a $526 million toll road concession in Colombia.