The Rutas del Este consortium, led by Sacyr Concesiones, has issued a US$240 million bond to finance the construction of the Routes 2 and 7 expansion PPP Project in Paraguay.

The issue has had an oversubscription of 2.5 times, demonstrating the strength of the project and the confidence of international investors in it. The bonds will have an interest of 5% and a maturity of 17 years.  

Rutas del Este, integrated by Sacyr (60%) and the Paraguayan firm Ocho A (40%), also has financing from the Inter-American Development Bank (IDB Invest) of up to US$200 million to undertake the work, which will require a US$520 million investment, approximately. The financing of this project is the largest private investment made in Paraguay. 

The project includes 149.5 km of the National Routes RN-2 “Marshal José Félix Estigarribia” and RN-7 “José Gaspar Rodríguez de Francia” that will be duplicated, improved, operated and maintained by the concessionaire.  The project, which improves and expands a strategic 150-kilometer corridor, is the first road project under the formula of public-private partnership in the country. 

The contract, which includes the construction of five variants (37.5 km), will free crossings of urban areas in the area and seek to reduce the current cost for the benefit of users. All this within the framework of the Public-Private Partnership (APP) contract, with the Ministry of Public Works and Communications (MOPC).  

The construction and expansion of Routes 2 and 7 is the first road project under the regime of the PPP law of Paraguay. Its development is vital for the growth of the country since this is the most important corridor in Paraguay and concentrates 70% of the economic activity.