Autopistas del Sol S.A.

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MIGA has issued $158.5 million in guarantees for the development of a toll road in Costa Rica. The guarantees are covering an equity investment by FCC Construcción S.A. and Itinere Infraestructura S.A., and a shareholder loan by Caja Madrid. MIGA is providing 15-year coverage for the equity against the risk of transfer restriction. The debt will be covered for up to 18 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract. The project consists of the design, construction and/or rehabilitation, operation and maintenance of portions of the toll road linking San José to Caldera. This 25-year concession will be the first highway concession in Costa Rica to successfully reach financial closing and begin operations. The project is aligned with the World Bank Group's strategy for Costa Rica, which includes supporting, rehabilitating, and maintaining key trade corridors. The corridor connects the main industrial/business area of the country to one of the main ports. The project is expected to reduce transportation costs by reducing travel time by 1.5 hours for those who travel the full length of the corridor. It is also expected to reduce the number of road accidents and the costs associated with heavy traffic conditions, such as gasoline consumption and deterioration of vehicle parts and tires. By providing easier access to the port of Caldera, the investment will help improve the country's trade competitiveness and may reduce the price of imports. MIGA's participation is critical for the project to proceed since it allows mobilization of commercial bank financing that might otherwise not be available. It also supports MIGA's commitment to catalyzing private sector investment in infrastructure. Environmental Impact Information: San Jose-San Ramon Toll Road in pdf form (EIA Part 1, Part 2,  Part 4,  EIA Executive Summaries, EIA Supplement: Resettlement Policy Statement (English/Spanish); and Abbreviated Resettlement Action Plan (English/Spanish). Posted: February 22, 2006

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