Libramiento Norte

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In December 2005, the Mexican Secretary of Communications and Transport (SCT) awarded a 30 year BOT contract for the Libramiento Norte to the IDEAL-Inbursa consortium. The Libramiento Norte was a four lane 223 Km. bypass, connect the corridors that converge in the Mexico City metropolitan area: Mexico- Nogales, Mexico-Nuevo Laredo, Acapulco-Tuxpan and Puebla-Ciudad Hidalgo. Libramiento Norte was designed to link Mexican South and Southeastern regions with North and Northwestern ones directly by avoiding passing through the metropolitan area of Mexico federal district. The project was designed in two phases: The first one was a 78 km stretch between Atlacomulco and the cross-raod of Tula I in Hidalgo. The second phase was a 142 km. stretch from Tula I in Hidalgo to San Martin Texmelucan in Puebla. The wining consortium was formed by two private local companies: Promotora Inbursa SA de CV and Impulsora Del Desarrollo Y El Empleo En America Latina SA de CV (IDEAL). There was no public information on the stake of each consortium member. The project cost was estimated at US$282 million (2,972 million pesos). Project sponsor secured funding for the project with its own resources to meet the two year construction period stipulated in the contract. Construction for the 78 km first phase began in January 2006 and was expected to finish by late 2006. The second phase was expected to be operational by 2008. The project cost was determined in a public tender through which the highway concessionaire was selected. IDEAL-Inbursa consortium won the tender by offering the second lowest construction cost. SCT selected the winning bid based on the second bidding criteria (the lowest construction const) because all five bidders were tied on the first bidding criteria (lowest amount of public funds requested). The amount of public funds requested was calculated as the sum of the initial government contribution and the net present value of the subordinate contribution –to ensure debt service of loans used to finance work. According to the tender basis, a trust (Fideicomiso de Infraestructura –FINFRA) in Mexico’s National Bank of Public Works and Services (Banco Nacional de Obras y Servicios Publicos –Banobras) was responsible for providing requested public fuds. IDEAL-Inbursa consortium won the tender after Acciona-FCC consortium, which offered the lowest construction cost (US$251 million) was disqualified because it did not comply with some financial and technical requirements. According to STC, Acciona-FCC consortium’s proposal did not meet the minimum 25% of equity contribution an other technical requirements. Acciona-FCC challenged the results, but no decision to overturn had been made. Other bidders were OHL, ICA-Itinere consortium and Norberto Odebretch-Omega-Autorutes Du Sud de la France consortium. Under the Greenfield contract, SCT provided final designs and rights of way, and set maximum average tolls and the rule for updating them. The concessionaire agreed to pay 0.5% of gross revenues to the government for exploiting the road. The contract also stipulated that in the event that a concessionaire’s investment was recovered ahead of schedule, excess revenues were set to be shared between the concessionaire and Banobras. The project contract did not grant any income guarantees for the concessionaire. The return on investment and profitability were the sole responsibility of the concessionaire. Construction works were concluded in July 2014. In December 2016, Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers' Pension Plant acquired a 49% stake in the project for US$ 903.3 million.