Libramiento Mexicali

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In November 2004, Mexico’s Secretaria de Comunicaciones y Transportes (SCT) awarded a 30 year contract to build, operate and maintain 41 km of the Mexicali bypass in the state of Baja California to Grupo Omega. The project includes building, operating and maintaining a stretch linking the Federal highway San Luis Rio Colorado with Mexicali, and completing construction of a stretch of the Federal Highway between Mexicali and Tijuana. The project cost was estimated at estimated at US$63.9 million. Mexico’s National Bank of Public Works and Services (Banco Nacional de Obras y Servicios Publicos – Banobras) provided a 15 year loan for US$10.4 million (110 million pesos) and a trust (Fideicomiso de Infraestructura –FINFRA) in Banobras provided US$37 million (390 million pesos) as subordinated equity. The Greenfield project was granted through a public tender carried out by the SCT. The project was awarded to the bidder who presented a technical and financial proposal that complies with the requirements established in the bidding documents and requested the lowest amount of public funds –measured as the sum of the initial contribution and the net present value of the subordinate contribution. Grupo Omega won over 5 other bidders by requesting public funds to cover 57.4% of the cost. Construction began in January 2005 and was expected to be completed by July 2006.