IDB Invest, a member of the Inter-American Development Bank (IDB) Group, approved a $200 million financial package to Concesionario Rutas del Este, comprised of companies Sacyr Concesiones, Ocho A S.A. and Compañía Sudamericana de Empresas Eléctricas, Mecánicas y de Obras Públicas S.A.
The project will contribute to improving the level of services and road safety in one of the main corridors of Paraguay, of key importance for the economic activity.
The duplication of lanes in 80 percent of routes 2 and 7 will reduce traffic congestion, especially due to cargo transportation, and save travel time between Asunción and Ciudad de Este, the largest cities and economic centers in the country. Road quality improvement will also reduce transport operation costs and the probability of accidents, improving safety for users.
BID Invest has approved financing consisting of a guarantee and a loan which together have a total limit of $200 million. The project has a total cost of approximately $530 million and is the first Public-Private Partnership (PPP) contract signed within the framework of Paraguay's PPP Law, which seeks to attract direct foreign investment to the country. The concession was granted in 2016 and consists of the extension and improvement of 140km of road.
This operation potentially contributes to three of the United Nations Sustainable Development Goals: Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9) and Alliance to achieve the objectives (SDG 17).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients
About Rutas del Este S.A.
Rutas del Este is a special purpose vehicle created under Paraguayan law as a corporation to undertake the design, financing, construction, maintenance and operation of the Routes 2 and 7 project. Rutas del Este started operations in 2017 with the activities of Tranche 0.