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Route 2 and Route 7 Expansion

Sector: Cable car • Location: Paraguay

Source: World Bank Group

Project
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The project involves the duplication, improvement, operation and maintainance of 149.5 km of the Paraguay's National Routes RN-2 "Mariscal José Félix Estigarribia" (Routes 2 between the capital, Asunción, and Coronel Oviedo) and RN-7 "José Gaspar Rodríguez de Francia" (Route 7 between Coronel Oviedo and Caaguazú). This is the first road project under the PPP law of Paraguay. Rutas del Este SA, own

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The project “Route 2 and Route 7 Expansion” is an infrastructure initiative in the Cable car sector, located in Paraguay. Taiyo aggregates data on it from World Bank Group.

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Description

Description

The project involves the duplication, improvement, operation and maintainance of 149.5 km of the Paraguay's National Routes RN-2 "Mariscal José Félix Estigarribia" (Routes 2 between the capital, Asunción, and Coronel Oviedo) and RN-7 "José Gaspar Rodríguez de Francia" (Route 7 between Coronel Oviedo and Caaguazú). This is the first road project under the PPP law of Paraguay. Rutas del Este SA, owned by Sacyr Concesiones (60%) and Ocho A SA (40%) holds a 30-year concession (until March 2047). The project cost is approximately $520 million. Inter-American Development Bank (IDB Invest) providing $200 million consisting of a guarantee and a loan. Rutas 2 and 7 Finance Ltd issued $ 240 million zero coupon bond arranged by Goldman Sachs. The issuance was 2.5 times oversubscribed resulting in raising $458 million. Shareholder contributions amount to EUR 70 million ($80 million). Financial close was announced in October 2019. http://www.sacyr.com/es_en/Channel/News-Channel/news/featuresnews/2019/Adjudicacion/20190702_Adjudicacion_paraguays%20routes%202%20and%207.aspx https://www.idbinvest.org/en/articles/idb-invest-supports-expansion-routes-2-and-7-paraguay https://www.whitecase.com/news/press-release/white-case-advises-ground-breaking-financing-2-and-7-road-project-paraguay http://www.sacyr.com/es_en/Channel/News-Channel/news/Press-Releases/2019/Notas-de-prensa/20191014_N.P_Bonos_Paraguay.aspx

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