CAF to Fund Rehabilitation of 190+ km of Roads in Rocha
CAF and its subsidiary CAF-AM Administradora de Activos Uruguay S.A. put pen to paper to finance Road Circuit Project No. 2, which involves the rehabilitation of 192 kilometers of national routes 9 and 15.
CAF—development bank of Latin America—and its subsidiary CAF-AM Administradora de Activos Uruguay S.A., put pen to paper to formalize the financing of Road Circuit Project No. 2., which calls for the design, construction, operation and financing in stretches of national routes 9 and 15, and the connection between these very high traffic roads.
Located southeast of the department of Rocha, Road Circuit No. 2 will undergo construction, rehabilitation and enhancements in a total stretch of 192 kilometers, optimizing connection between Uruguay and Brazil on the border city of Chuy. This project will represent an important milestone in the nation’s road infrastructure.
In the context of the Public-Private Partnership (PPP) Projects Program, Road Circuit Project No. 2 was awarded by the Ministry of Transport and Public Works (MTOP) to Grupo Vial Oriental Dos S.A., composed of Uruguayan companies Hernández & González S.A. and Traxpalco S.A., for a 20-year term.
With a total construction cost of USD 130 million, this Project will be financed with capital contributions from shareholders and senior debt in Indexed Units (Uruguayan pesos adjusted for inflation) granted by CAF for the equivalent of USD 6.5 million, and by the Financial Trust Debt Fund for Infrastructure in Uruguay II CAF-AM, managed by CAF Administradora de Activos Uruguay S.A., for USD 65 million.
“Focusing on the work we do at CAF to promote sustainable growth of countries where we have a presence, we are proud to support this important road project in Uruguay, which will enhance the country’s connectivity, promoting productive development locally and regionally,” said François Borit, CAF representative in Uruguay.
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