IDB Invest Improves Uruguay’s Transport Network with Road Circuit 5
IDB Invest is providing a $54 million loan to Autovías Cinco, S. A., a specific purpose corporation incorporated under the laws of Uruguay for the sole purpose of build, operate and maintain the Road Circuit 5. This project is among the largest launched by the country’s government to improve the national road network.
The deal includes the mobilization from donor funds managed by IDB Invest. Overall, the project will design, build, rehabilitate, operate and maintain 184 km-long stretches of Route 14 (from Sarandí del Yí to the town of Lascano) and Route 15 (from Lascano to Velázquez), running through the departments of Rocha, Florida and Lavalleja, in South Uruguay.
The financing component of the project is completed with the participation of other local and international co-financing banks, totaling a financial package of approximately $138.2 million, and by the sponsor’s own capital.
This is the sixth project of seven public public-private participation (PPP) initiatives driven by the Ministry of Transport and Public Work of Uruguay. Certain tranches of the project will be greenfield, others will be upgraded significantly, improving the connectivity and productivity of the southeastern part of the country with the rest of Uruguay’s trunk or primary roads (Routes 8, 5, and 3) and with the coastal zone of the Uruguay River, as well as safety. Moreover, the project will provide an alternative to the southern corridor (comprised of Routes 1, 2, 11, 12, 8, and 9) and thus help alleviate traffic. The implementation involves a 20-year concession contract and a construction period of approximately 36 months.
This deal potentially contributes to four of the United Nations Sustainable Development Goals (SDGs): Good Health and Well-Being (SDG 3), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Partnerships for the goals (SDG 17).
About IDB Invest
IDB Invest, a member of the 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 companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Autovías Cinco, S. A.
Autovías Cinco, S. A. is a special purpose company created specifically for these purposes. Its shareholders are companies with a recognized track record internationally and in Uruguay. Aldesa Construcciones, S. A., part of the Aldesa group, which has been executing civil engineering infrastructure and construction works for more than 50 years. The company has significantly expanded in the concessions sector over the last few years by operating transport infrastructures, mainly in Spain and Mexico and, it is also present in the industrial, energy, real estate and concessions sectors. Ramón C. Álvarez, S. A. has operated in Uruguay since 1957 and acted as contractor in several works for the national government. Coalvi Renovables, S. L. is a subsidiary of Aldesa which acts as an investment vehicle in Uruguay.