Mitla-Tehuantepec Highway

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In April 2010, Mexico's Secretariat of Transport and Communications (SCT), awarded ICA [Mexico] a 20-year concession contract for the 163km Mitla-Tehuantepec federal highway in Oaxaca state. ICA was the only final bidder, presenting the sole bid of 9.23bn pesos (US$735mn) for the project, which involved building 93km of highway, as well as rehabilitation and expansion work. The highway had 70km of existing infrastructure. The project follows the structure of the PPS, which is a performance based contract, and gives an availability payment to the concessionaire on a quarterly basis, pending the meeting of specified criteria in the contract. Deductions in the quarterly payment can be made for a non-performing section of road. The existing section of the road (70km) was to charge a toll. The contract was signed in June 2010, giving ICA's 100% subsidiaries Caminos y Carreteras del MAYAB, S.A.P.I. de C.V. and Controladora de Operaciones de Infraestructura, S.A. de C.V.,full rights to the assets. Construction and rehabilitation was expected to take approximately 40 months to complete.