Arriaga - Ocozocoautla Highway Package

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On October 31, 2007, the federal secretary of communications and transportation (SCT) signed a 30 year concession contract with the consortium of Aldesa Construcciones SA and Agrupacion de Companias Constructoras de Veracruz SA de CV to modernize, operate and exploit the existing 46.5km Tuxtla Gutierrez-San Cristobal de las Casas highway as well as construct and operate the 93 km Arriaga – Ocozocoautla highway. Both highways were to merge into a 139.5 km stretch in the state of Chiapas and were to feature viaducts, tunnels, 35 bridges and five intersections. The Arriaga – Ocozocoautla highway was divided into two stretches, an existing 20km stretch from Arriaga to Tierra y Librtad and a new73km stretch from Tierra y Libertad to Ocozoautla through mountainous territory. The Arriaga – Ocozocoautla Highway Package was part of the Programa Sectorial de Comunicaciones y Transportes which sought to construct or modernize over 17,000km of roads between 2007 and 20012. The contract was granted under the new highway concession model which transferred all of the traffic risk to the private operator and required a minimum equity contribution. The new model also provided initial funding and a minimum revenue guarantee for each project. Bidding for the Arriaga – Ocozocoautla Highway Package was conducted through an international tender launched on September 28, 2006. The criterion used to evaluate the bids was the lowest sum of the net present value of the minimum revenue guarantee and the initial public contribution. There were six bidders for the contract: The contract was awarded through an international competitive tender that began on September 28, 2006 by SCT. The concession was awarded to the bidder who presented a proposal that complied with the technical, legal and financial requirements established in the bidding documents, and requested the lowest sum of the net present value of the minimum revenue guarantee and the initial public contribution. There were four bidders for the contract: • Promotora del Desarrollo de America Latina SA de CV [Mexico] and Promotora Imbursa SA de CV [Mexico] • Grupo Hermes SA de CV [Mexico]; La Peninsular Compania Constructora SA de CV [Mexico] • Controladora de Operaciones de Infraestructura SA de CV [Mexico] • Aldesa Construcciones SA [Spain] and Agrupación de Companias Constructoras de Veracruz SA de CV [Mexico] On September 14, 2007, the consortium of Aldesa Construcciones SA and Agrupacion de Companias Constructoras de Veracruz SA de CV was awarded the contract. Investments in the new highway package were estimated at US $287 million (210 million euro). To finance the exploitation of both highways, a loan of US $205 million was arranged by Banco Santander in late November 2007. The private operator was allowed to charge tolls until an amount specified in the contract which was not publicly available. After this amount was reached, toll revenue was to be split between the government and the private operator. In November 2007, the consortium began operating the highways in the package. Construction on the new sections of highway also started at this point and was scheduled for completion by the end of 2009. In August 2010, Mexico's transport and communications ministry (SCT) inaugurated the Arriaga-Ocozocoautla highway. Investment figures converted from Euro to USD using the market rate, period average for 2007 published by the IMF.