IDB Invest provides financing for U$332m road PPP in Uruguay

By IDB Invest

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 Concourse 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 Works 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).