Perote Banderilla Highway and Xalapa Bypass

active

On February 14, 2008 a consortium led by Isolux Corsan of Spain and Moto-Engil of Portugal signed a 30 year Build Operate Transfer contract with the Mexican Secretariat of Communications and Transport (SCT) for the 30 km Perote Banderilla Highway and the 29km Xalapa Bypass in the state of Veracruz. The contract was awarded on December 20, 2007 and was tendered under the rules of Mexico’s New Highway Concession Model (Nueva Esquema de Concesiones). The New Highway Concession Model stipulated that the bidding criteria in a given tender was the lowest net present value of subsidies in the form of fixed or variable payments, or in the case of projects not requiring subsidies, the highest payment to the government. A call for tenders was launched on October 31, 2006. Seven consortia submitted final bids: • Isolux Corsan Concesiones SA, Isolux de Mexico, SA de CV, Mota-Engil Concessoes de Trasnportes SGPS SA and ESConcesoes SGPS, SA • Consortium comprised of: Promotora del Desarrollo de America Latina, SA de CV and Promotora Inbursa, SA de CV • Obrascon Huarte Lain, SA • Omega Corp SA de CV • Controladora de Operaciones de Infraestructura, SA de CV, Mexicana de Global Via Infaestructuras, SA de CV, and FCC Construction SA • Grupo Mexicano de Desarrollo, SAB • Constructora de Infaestructura Vial SA de CV The contract was awarded to the consortium of Isolux Corsan Concesiones SA, Isolux de Mexico, SA de CV, Mota-Engil Concessoes de Trasnportes SGPS SA and ESConcesoes SGPS, SA which submitted the largest payment to the government of 209 million Euros (US $307.4 million). The winning consortium formed Concesionaria Autopista Perote-Xalapa SA de CV as the project company. Isolux Corsan [Spain] controlled 50% of the project company, while Mota-Engil SGPS [Portugal] had a direct share of 30% as well as an indirect share through Espirito Santo Concessoes SGPS, a joint venture formed with Portuguese bank Banco Espirito Santo (BES) which held 20% of the consortium. The total project cost was estimated at US $738.40 million. The project reached financial closure in February 2008, through a syndication led by commercial banks Grupo Santander, Banco Mercantil del Norte and La Caixa with US $252.90 million in equity and US $485.50 in debt. The loans had a term of seven years which was to cover the period of construction. Espirito Santo Concessoes SGPS received a separate loan of US $97 million to cover its equity participation in the project.