Sacyr makes progress in the concession project of routes 2 and 7 of Paraguay
The contract for Routes 2 and 7 comprises 170 km of roads that will be duplicated, operated and maintained by concessions company Rutas del Este.
Rutas del Este, a company led by Sacyr Concessions, makes progress in the Routes 2 and 7 project in Paraguay.
The company has signed an Addendum to the public-private collaboration contract signed with the Ministry of Public Works and Communications (MOPC) that will enable concluding financing of the project and the start of its construction, after the completion of the works in section 0.
This agreement is a major step for Routes 2 and 7, as it establishes deadlines for the provision of the land required for the development of the project. Which was a pre-requisite and essential condition for banks to be able to sign the financing with the company.
The commitment established by the MOPC in the Addendum on the provision of the land will provide Paraguayan and international banks –whose letters of intent are still fully in effect–, the necessary confidence to formalize the financing of this emblematic work.
Rutas del Este is the consortium which has been awarded the construction and operation of Routes 2 (between Asunción and Coronel Oviedo) and 7 (between Coronel Oviedo and Caaguazú). The contract includes 170 km of roads that will be dual carriageway and improved, operated and maintained by the concessions company, including the construction of five variants between the cities of Asunción and Caaguazú.
Approximately 65% of the population of the country, that is, over four million people, lives in the territory between Routes 2 and 7, whose extension will enable a smoother and safer transit.
The investment managed in the project exceeds 440 million euros.
As this project entails the duplication of Routes 2 and 7 of the first project through a Public-Private Partnership (PPP) in the country, its development is key for the growth of the Paraguayan private sector and will enable a greater volume of foreign private investment, which, in turn, will bring about new sources of employment for Paraguayan companies and workers.