Investment

CAPEX: 702 MM USD

OPEX: 601 MM USD

TOTAL: 1,303 MM USD

Financial Indicators

IRR: 7%

Recovery Time: 30 years


Management Model

  • Public tender concession agreement
  • Conflict resolution through mediation and arbitration for force majeure events, acts by authority and fortuitous events

Payment modality

Investment is recovered by the delegated manager through 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
  • Legal stability: standard on concession agreements


Objective

Increase the service and connectivity level of the provinces of Guayas and Los Ríos with the rest of the country, conecting areas of high agricultural production for export.


Project Details

Improve road infrastructure and connectivity services between the provinces of Guayas and Los Ríos, 60 Km in length, 30-year concession term.


Technical description of the Project

Level of preliminary project studies: 

  • Conducted by Empresa Pública Española INECO
  • Traffic studies were conducted by Consultora INECO

Operation & rehabilitation phase:

  • Comprehensive rehabilitation of the existing road, improve current pavement structure, horizontal and vertical signage, minor and major drainage cleaning, toll booth construction with complementary and safety services to the section of road (ambulance, tow truck, mechanic, communications services, etc.)
  • Expand the road from 2 to 4 lanes
  • Timely maintenance avoiding premature deterioration of the road infrastructure


Market

  • Average traffic
    – Daily flow: 12,465 vehicles
    – Annual flow: 4.5 million vehicles
  • Users from the provinces of Guayas and Los Ríos


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 Environment (MAE) – Amendment to the Sixth Book of the Unified Text of Secondary Legislation (TULAS)


Location

Provinces: Los Ríos and Guayas. Starts South of the road circuit from Quevedo to Babahoyo, which connects with the lateral corridor of Jujan which is 10 km long; its construction is planned as part of the project.