Road Corridors 21 and 24 in Uruguay PPP Project’s Financial Closing


Jiménez de Aréchaga, Viana + Brause and Clifford Chance advised on the deal

Sacyr Concesiones has closed alongside the Fondo de Deuda para Infraestructuras [Debt Fund for Infrastructures] in Uruguay CAF I financing amounting to 685 million Indexed Units (IU) (approximately $87.2 million) and a period of 23 years of the concession project of Routes 21 and 24 (Uruguay).

The project includes the reconstruction and maintenance of Routes 21 (a stretch between Nueva Palmira and Mercedes) and 24 (which crosses the departments of Río Negro and Paysandú, joining routes 2 and 3). Routes 21 and 24 are two key arterial roads for the transport of production to the port of Nueva Palmira. Of particular interest is the construction of the 8.5 km Nueva Palmira bypass and the 121.75 km rehabilitation of a single carriageway to a dual carriageway. Furthermore, maintenance will be carried out in the two full stretches, totaling 179.10 km.

The Uruguayan Ministry of Transport and Public Works awarded the consortium comprised of Sacyr Concesiones (43%), Sacyr Construcción (8%) and Grinor (49%), the first road contract of Participación Público Privada [Public-Private Partnership] (PPP). The concession is for 24 years and the total investment in the project will be $160 million, with a revenue portfolio of around $411 million.

Fideicomiso Financiero Fondo de Deuda para Infraestructura en Uruguay CAF 1 granted the financing.

Jiménez de Aréchaga, Viana + Brause advised Fideicomiso Financiero Fondo de Deuda para Infraestructura en Uruguay CAF 1 with a team including Fernando Jiménez de Aréchaga (h) (Picture), Magdalena Secco and Leandro Iglesias.

Clifford Chance LLP advised Fideicomiso Financiero Fondo de Deuda para Infraestructura en Uruguay CAF 1 with José Guardo and Antonio Sánchez-Cirujano.

Involved fees earner: Fernando Jiménez de Aréchaga Sr. – Jiménez de Aréchaga, Viana & Brause; Magdalena Secco – Jiménez de Aréchaga, Viana & Brause; Leandro Iglesias – Jiménez de Aréchaga, Viana & Brause; José Guardo – Clifford Chance;

Law Firms: Jiménez de Aréchaga, Viana & Brause; Clifford Chance;

Clients: CAF-AM Administradora de Activos Uruguay S.A.;

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Author: Ambrogio Visconti.