Ecuador seeks strategic partner for US$250mn road project

Hidroequinoccio EP, a public company owned by Ecuador’s Pichincha prefecture, opened the process to select a strategic partner for the Bicentennial road project.

The reference capex is put at US$247mn and opex at US$139mn.

The project involves the expansion and maintenance of the General Rumiñahui highway, the main road connection between Quito and the Chillos valley in Rumiñahui canton.

The advanced feasibility studies include the design of the road connection to the Arbolito and Ejido parks in the city of Quito.

The main works include a four-lane viaduct over the Machángara river, which must be connected with two tunnels, one in each direction, with two lanes each, and entrance and exit ramps to the Rumiñahui highway, according to tender specifications.

Estimated construction time is three years.

The strategic partner will be responsible for the design, construction, financing, operation and maintenance. After completion of the work, the operation and maintenance phase will last for 30 years.

The contract will also include maintenance of the existing highway.

According to the bidding rules, offers must be submitted by January 15, 2025. The start of economic and contractual negotiations is scheduled for April 7 and the award decision for May 1.

All infrastructure must be equipped with modern electronic equipment and traffic control systems.

According to data from the Pichincha prefecture, approximately 80% of the inhabitants of the Los Chillos valley use the General Rumiñahui highway daily to travel to their workplaces, universities, schools and other destinations, located mostly in the central-north area of Quito.

The expectation is that 40% of the traffic on General Rumiñahui highway will use the new infrastructure.

Diego Almeida, director in charge of Hidroequinoccio's public-private projects multidisciplinary business unit, told BNamericas that around 70 companies have shown interest in the process.

According to Hidroequinoccio, the project's financial model has been carefully structured to attract foreign investment, providing a balance between risk and profitability, making it bankable.

Almeida said bankability is guaranteed through the collection of tolls on the highway and the implementation of a new automatic toll system.