Investment

CAPEX: 481 MM USD

OPEX: 820 MM USD

TOTAL: 1,301 MM USD

Financial Indicators

IRR: 13.45%

Recovery Time: 21 years


Management Model

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

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
  • Legal stability: standard on concession agreements


Objective

To improve and/or maintain adequate levels of road service in the Santo Domingo - Quevedo road, through its expansion into 4 lanes, implementation of complementary services, fostering investment to improve road infrastructure.


Project Details

Construction, maintenance, rehabilitation, expansion and exploitation of the Santo Domingo – Quevedo road which is 84.05 Km long.


Technical description of the Project

Level of preliminary project studies:

  • Preliminary studies carried out by Empresa Pública Española INECO
  • The traffic study was conducted by Consultora León & Godoy

Operation & rehabilitation phase:

  • Fully rehabilitate the existing road, improving the current pavement structure
  • Road expansion to 4 lanes
  • Improve safety levels through the implementation of complementary services: road surveillance, ambulances, tow-trucks, communications, construction of pedestrian crossings in consolidated areas, etc.
  • The typical section is comprised of two causeways; 2 lanes per direction


Market

  • Average traffic:
    – Daily flow: 15,856
    – Annual flow: 5 Million
  • Road users: Provinces of Santo Domingo 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: Santo Domingo and Los Ríos
  • Beginning of El Márquez bypass to the city of Quevedo (Northern start of the Quevedo road circuit)