Investment

CAPEX: 10 MM USD

OPEX: 2 MM USD

TOTAL: 12 MM USD

Financial Indicators

IRR: 15.31%

Recovery Time: 10 years


Management Model

  • The project will be developed through a public tender

Payment procedure

  • The investment will be recovered by the delegated manager through the collection of toll rates
Type of vehicle Rate
Cars, urban busses or vans $ 1,00

As the route is urban, the road traffic will be mainly for light vehicles and urban busses; therefore, there will be an only fee for all type of vehicle.

Benefits for the investor

  • Income tax exemption for 10 years
  • Exemption of exit tax on the importation of goods, acquisition of services, financing, dividends or profits, payments for acquisition of shares rights or participations
  • Legal stability regarding the rules of the granting contract


Objective

To impulse the social, tourist and commercial development of the city, improving the formality and functionality of the localities.


Project Details

The project consists of the resurfacing of the Eloy Alfaro avenue in the city of Chone (a landmark with hogh nodal circulation), consisting of a linear park and the construction of a reinforced concrete bridge, so that this local planning will contribute to tourism development.


Technical description of the Project

  • Studies of pre-feasibility and feasibility made by the technical team of Chone Municipality
  • Environmental studies in making process
  • The main objectives of this project is the road resurfacing, the construction of a linear park along the 2.400m, and the construction of a reinforced concrete bridge of 38m long by a useful width of 12,20m, distributed in 3 sections: vehicular, cycling and pedestrian
  • Change of structure of road and rigid pavement, including signs, sidewalks and curbs, cycle paths
  • A compulsory traffic toll will be implemented, it will cost $1 USD


Market

ADT: 3.700 vehicles (entrance to the city)

Project Benefits

  • Urban regeneration that will boost tourism development in the territory
  • Improve the functionality and accessibility of the city
  • Decrease of travel time
  • Decrease in vehicles expenditures


Regulatory Framework

  • Organic Code of Territorial Organization, Autonomy and Decentralization (COOTAD, Spanish acronym)
  • Production, Trade and Investment Organic Code (COPCI, Spanish acronym)
  • Enviroment Organic Code
  • Public – Private Partnerships and Foreign Investment Organic Incentive Law
  • Executive Order No. 810
  • Financing Program of Public-Private Partnership Projects of Banco de Desarrollo del Ecuador B.P


Location

  • Province: Manabí
  • City: Chone