Investment

CAPEX: 161 MM USD

OPEX: 206 MM USD

TOTAL: 367 MM USD

Financial Indicators

IRR: 13.04%

Recovery Time: 26 years


Management Model

  • Through a concession agreement by means of a public tender
  • Conflict resolution through mediation and arbitration by force majeure events, acts by the authority and fortuitous event

Payment modality

The investment is recovered by the delegated manager through the direct collection of tolls.

Automotive Type Rate
Automobiles, SUVs or trucks $ 1.5
Buses and trucks with 2 axes $ 3.0
Buses and trucks with 3 axes $ 4.5
Trucks with 4 axes $ 6.0
Trucks with 5 axes $ 7.5
Trucks with 6 axes $ 9.0

Benefits for the Investor:

  • Income tax exemption for 10 years
  • Exemption to the currency outflow tax on the importation of goods, acquisition of services, funding, dividends or profits, payments for acquisition of shares, rights or participations
  • Taxes on foreign trade: exemption on customs rights and VAT on imported products and services


Objective

To rehabilitate, improve and expand to 4 lanes and maintain the road in adequate service conditions, promoting private investment.


Project Details

The Naranjal – Río Siete road project has an approximate length of 50 Km corresponding to the road corridor E-25. It consists of an initial rehabilitation and improvement of the existing section in the first 2 years of the project, a subsequent expansion to 4 lanes starting in the 2nd year of operation, and road maintenance throughout the 30-year concession period.


Technical description of the Project

Level of preliminary project studies: 

Conducted by CONCEGUA S.A.

Rehabilitation phase:

The comprehensive rehabilitation and total signage of the existing road will be done during the first 2 years.

Operation phase: 

  • Routine Maintenance: after the rehabilitation, the necessary actions and tasks will be undertaken to maintain the road
  • Periodical Maintenance: the plan is to carry out full coating of the road every 5 years, to ensure that the pavement structure is reinforced for future load needs

Expansion of the road from 2 to 4 lanes as of the second year of operation:

The total expansion of the road will begin from 2 to 4 lanes.


Market

  • Average traffic:
    – Daily flow: 7,954 vehicles
    – Annual flow: 2.9 million vehicles
  • Users from the provinces of Guayas, Azuay and El Oro


Regulatory Framework

  • Organic Law of Incentives for Public-Private Associations and Foreign Investment
  • Organic Code of Production, Trade and Investments, COPCI
  • Application Rules of the Exceptional Regime of Public Transportation Service Delegation (Executive Decree #810)
  • Rules of the Public-Private Collaboration Regime (Executive Decree # 582)
  • Ministerial Agreement #061 of the Ministry of the Environment (MAE) – Amendment to the Sixth Book of the Unified Text of Secondary Legislation (TULAS)


Location

  • Provinces of Guayas, Azuay and El Oro
  • Population benefited: Naranjal, Balao & Camilo Ponce Enríquez. 113,957 residents