Red Vial Number 5

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Peruvian-Chilean consortium Norvial won a 25-year concession to rehabilitate and build coastal roads and bridges known as Red Vial Number 5 or highway network number 5. The roads connect the cities of Ancon, Huacho, and Pativilca in Peru. The road and bridge network contributes to the regional activities such as industrial manufacturing, agriculture, mining, fisheries, and access to the Callao port and the city of Lima. The project includes the construction of two bypasses (total length 34 kilometers), construction of two bridges (total length 587 meters), construction of two interchanges, and rehabilitation of several roadway sections. The winning offer made by Norvial was to pay the state 5.5 percent royalty on collected tolls. Members of the consortium Norvial are the Peruvian groups Grana y Montero and JJC Contratista and the Chilean group Besalco. Norvial expects to invest US$75 million in the project during the concession period. The project is divided in two stages, the initial satge involves construction along Huacho-Primavera, Ambar-Pativilca, and Huacho-Pativilca stretches. The IADB and the IFC committed US$35 million in loans for the project's initial investment. The second stage involves additional roadway, bridge, and interchange construction after two years (as soon as traffic reaches required levels). Similar to the first stage, the second stage is expected to be partially financed with the support of international institutions and development banks. http://www1.ifc.org/ar2003/pdfs/projectCommitments.pdf None