CG/LA Infrastructure's InfraBlog
■ Grupo SANJOSE consolidates its concessional position in Chile.
■ This new awarding involves for SANJOSE an estimated income portfolio of EUR 900 million.
■ The new highway is 136.5 km long and is located in the most dynamic area of the country.
The Ministry of Public works of Chile (MOP) has awarded Grupo SANJOSE the construction, repair, conservation and operation of the “Concesión Vial Rutas del Loa” in Chile, with a total investment amounting to EUR 250 million. The MOP reviewed the bids submitted by other two tendering consortiums, being SANJOSE successfully awarded the execution of the Project for reaching the highest technical and economic assessment.
The concession, for a maximum period of 35 years, is located in the Antofagasta Region, the second region in Chile and the most dynamic area in the country.
With a total length of 136.5 km, the concession consists of Route 25 and the new ring road of Calama, allowing traffic connection from this mining area of the country to Route 5, which crosses the Andean country from north to south. Route 25 will become a double lane road and will be continued on the new Eastern link of this important mining city, which involves a 25.5 km long additional single carriageway road. The project includes service roads, a link road to Sierra Gorda, several intersections, flyovers, a toll station, an emergency service area, pedestrian ways, as well as drainage, signalling and road safety works.
Traffic flow studies for this concession, which have a marked captivating nature for not existing quality alternative routes (trafficking related to mining industries and areas surrounding Route 25 use this road), show that in year 2017, year of implementation, Average Daily Traffic shall reach 4,500 vehicles.
This contract involves an estimated income portfolio for Grupo Sanjose of EUR 900 million during the concession period. The concession has a guaranteed minimum income system and the contractual term varies depending on traffic recorded, ensuring the achievement of the expected return regarding committed investment in the long-term.
With this new awarding, Grupo SANJOSE consolidates its presence in Chile, country where it was engaged in year 2009 the execution of the Hospitals of Maipu and La Florida, first health care infrastructure under concession regime in the country and awarded the “Latin America Social Infrastructure Deal of the Year 2011” by the prestigious British magazine “Project Finance” (Euromoney) for the financial transaction involved.
This new project is the first road infrastructure Project under concession regime for Grupo SANJOSE in Latin America, yet its joins existing concessions in India, Uruguay, Spain and Chile; and adds a new project to the international backlog, which has been significantly increase in year 2013 with recent awarding ins Abu Dhabi, Republic of the Congo, Timor Leste and Portugal.
Taken from Grupo SanJose: http://www.grupo-sanjose.com/english/noticias3.php?id=506