The “Circuito 5” Project is located in the interior of the Eastern Republic of Uruguay, spanning part of the departments of Florida, Lavalleja, and Rocha. The Ministry of Transportation and Public Works (MTOP) has granted a 20-year concession for the design, construction, operation, and financing of the road infrastructure of Routes 14 and 15 to concessionaire Autovías Cinco SA, consisting of the firms Aldesa Construcciones SA, Coalvi Renovables SL, and Ramón C. Alvarez S.A. The maximum term of execution of the works is 36 months (not including lighting, pedestrian shelters, bicycle lanes and side roads) from the signing of the Certificate of Possession.
For the sections of Route 14 going from Sarandí del Yí to the town of Lascano, a new road will be built with a new design that improves on the standard of the current road. For the section of Route 14 that goes from Varela to Lascano, the plan is to raise the roadbed from where it sits currently so as to prevent the flooding caused frequently by the swelling of the Cebollatí River, flooding that blocks the passage of vehicles and pedestrians. These infrastructure improvements will help reduce the cost of vehicle operations in terms of travel time and risk of accidents, especially at intersections and junctions, where crashes have been frequent in recent years.
IDB Group’s participation in the project will consist of an A Loan of up to US$65 million provided by IDB Invest. The financing plan will be supplemented by the sponsor’s own capital, as well as cofinancing from a local bank, which will provide resources in local currency in the amounts required to complete the financial plan.