IIRSA Centro Second Stretch

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In September 2010, the consortium Desarrollo Vial del Peru (Deviandes) and Peru's Ministry of Transport and Communications (MTC) signed the 25 year concession contract to build, rehabilate operate and maintain the second stretch of the IIRSA Centro highway.Deviandes was a Colombian consortium comprised of companies Concay SA, Incoequipos, Nexus Banca de Inversion and Viviendas del Peru a subsidiary of Constructora Colpatria SA. The percentage of ownership was not known. The project was awarded in a competitive tender. The bidding criterion was the maximum investment the bidder was wlling to undertake in the road. Ten firms presented offers for the highway concession, all of whom offered to carry out 10 more works than the minimum, leading to a tie in the bidding process. Proinversion declared Desarrollo Vial as the winner after presenting the highest economic offer. The project company would recover its investments via on monthly government payments to be done based progress on approved public works on the road. The concessionaire agreed to submit monthly planned works to the transport regulator, Ositran, which would have verified if there are consistent with the investment plan and approved it. Once Ositran confirmed that the public works had been done, then the government would pay to the concessionaire based on the public works executed to a maximum of the agreed investment. The project cost was approximately US $127 million. The second stretch of IIRSA Centro extended 377km and included the Puente Ricardo Palma (Lima)-La Oroya (Junin)-Huancayo (Junin) section and the La Oroya-Cerro de Pasco (Pasco) connections. The combined sections of IIRSA Centro were to stretch across 900km, passing through Lima, Junin, Pasco, Huanuco and Ucayali regions.