FC edges closer for Paraguayan road P3

The Paraguayan government has signed an addendum with a special purpose vehicle (SPV) on the provision of land for a $500m road P3 ahead of financial close.

The addendum ratified by the Ministry of Public Works and Communications and Rutas del Este, the SPV for the Rutas 2 y 7 P3, sets a timetable for the provision of land to deliver sections of the project, which was a pre-requisite from debt providers before signing a financing package.

Comprising Sacyr Concesiones, Mota-Engil and Ocho A, the SPV secured the contract in March 2017 to construct and operate the project, linking Asunción to Coronel Oviedo and Coronel Oviedo to Caaguazú, covering a total of 149km.

Rutas del Este said that the addendum “will provide national and international banks – whose commitment letters are fully in force – with the confidence needed to formalize the financing of such an emblematic project”.

The addendum targets sections 3, 4 and 5, from San José de los Arroyos to Caaguazú.

The team is already conducting works on section 0 from San Lorenzo to Ypacarai.