Desarrollos Carreteros del Estado de Durango (Decarred)

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In May 2009, Desarrollos Carreteros del Estado de Durango (Decarred) signed a 20-year contract with the State of Durango to rebuild and upgrade 10 highways (327km of road) in the Liguna region of the State of Durango. The new roads were to connect to the 232km Durango-Mazatlan highway, which was to cross the country's western mountain range, the Sierra Madre Occidental.The project's total cost was estimated at 1.5bn pesos (US$118mn). The project company was owned by Mexican firms Carreteras y Tecnologia en Concretos, S.A. de C.V and Carreteras y Tecnologia en Concretos, S.A. de C.V. The bidding variable was the Net Present Value of periodic payments totalling 3.4 billion pesos (US $269 million) over the 20 year period (starting with the contract signing in 2009). The project was tendered under the law for Proyectos de Inversion y de Prestacion de Servicios or (PIPS)system, similar to the federal PPS system. Under the PIPS,availability payments are made to the concessionaire in return for upgrading, operating and mainting the road. Tolls are usually not charged in these projects and in the case of Decarred, the sections were to remain toll-free. In December 2010,the Macquarie Mexican Infrastructure Fund (MMIF), operated by Australian investment bank Macquarie Group completed its acquisition of Desarrollos Carreteros del Estado de Durango (Decarred) from its previous operators, Rostec and Carreteras y Tecnología en Concretos, for approximately 1.544bn pesos (US$122 million). At the time of MMIF's acquisition, the toll-free roads were rebuilt and upgraded by cement manufacturer Cemex. The firm was to continue to perform maintenance work for the duration of the PPS contract, which expired in 2029.