MONTEVIDEO – A consortium comprising Spanish construction giant Sacyr and Uruguay’s Grinor was awarded the first Public Private Partnership contract in Uruguay for the renovation and maintenance of roadways, Deputy Economy Minister Pablo Ferreri said following a Cabinet meeting.
The Corredor Vial 21-24 project includes a three-year program of rehabilitation and construction to upgrade the roads and a 20-year concession to maintain the 170 kilometers (105 miles) of highway.
Work will begin “as soon as possible,” Ferreri said.
He described the PPP as “an important milestone” in Uruguay’s new approach to public works.
“All infrastructure” built through the PPP remains in the public domain and the project will be financed by the companies, he said.
Initial investment in the project is estimated between $64 million and $92 million, while the total investment over the duration of the contract is expected to total anywhere from $165 million to $235 million.
Ferreri said the Uruguayan government is “studying the possibility” of using the PPP mechanism for another half-dozen projects, including roads, a railway, schools and an renovation of Hospital Clinicas in Montevideo.