Sacyr Concesiones will renovate and maintain a 91.5km road in Mexico in a 3,929 million peso ($223 million; €195 million) deal – its first PPP project in the country.
Through the 10-year agreement with Mexico’s General Directorate of Road Maintenance, the firm will undertake the renovation and upkeep of two road sections in the central states of Mexico and Hidalgo. The roads run from Pirámides to Tulancingo and from Tulancingo to Pachucha and around 20,000 vehicles use them every day.
While other arms of the Madrid-based construction giant have worked in the country, the deal marks Sacyr’s first concession PPP. The firm said the entry reflects confidence in structural reforms enacted by President Enrique Peña Nieto. The PPP project is part of Nieto’s $600 billion National Infrastructure Plan launched in 2014, with around 37 percent of investment expected to come from the private sector.
Sacyr has been active across Latin America, already holding 15 assets in the region. In April, it was awarded a $526 million PPP deal to build a toll road in north-east Colombia, one of four highway concessions in the country. It also holds six highways and a hospital in Chile, along with assets in Peru, Uruguay and Paraguay.