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Sacyr Vallehermoso wins €500m road project in Chile

Just two days after winning a €792m road project in the Biobío region of central Chile, the concessions unit of Spanish developer Sacyr Vallehermoso said it won a second highway construction contract in the Tarapacá region of Northern Chile.

The Chilean Ministry of Public Works has awarded Spanish developer Sacyr Vallehermoso its second highway deal in less than a week: a contract to develop about 80 kilometres of roads in northern Chile. 

Sacyr estimated the total revenue from the project would be €500 million and said that the project requires an investment of €140 million.

The project, Alternativas de Acceso a Iquique, includes the construction, maintenance and improvement of 78.4 kilometres of highways as well as service roads and other works around Iquique in the Tarapacá region of Northern Chile.  The project carries a three-year construction period and concessions with a maximum term of 32 years, according to the Ministry of Public Works.

The four other bidders for this project were: Consorcio Belfi Brotec; a group formed by ACS-subsidiary Concesiones Viarias Tres and Besalco; Nuevos Accesos a Iquique, formed by Construcciones y Pavimentos, FV and San Felipe; and Rutas de Iquique, a consortium comprised of Claro Vicuña, Valenzuela, Conpax and Valko, according to the Ministry of Public Works.

On Tuesday, Sacyr said that it had won a contract for a 103-kilometre Chilean highway project with 35-year concessions.  The contract involves construction and maintenance of the Autopista Concepción-Cabrero in central Chile.  Sacyr said that the project required investment of €270 million and predicted revenue of €792 million.

Sacyr established its concessions unit in 1996 and is currently constructing or operating projects in Chile, Portugal, Costa Rica, Italy, Ireland and Spain, according to its website. Sacyr said in a statement that it has invested more than €2 billion in civil engineering and mining infrastructure projects in Chile.

In related news, Sacyr will issue new shares worth €96 million, for which it already has €40 million in commitments, according to a report from Dow Jones.