Mexico's Empresas ICA, S.AB. de C.V. confirmed yesterday that its subsidiary COVIMSA has signed an agreement with CKD Fomento a la Energía e Infraestructura de México (EXI), through the EXICK Trust, for a Ps. 750 million (around US$40 million) convertible loan to provide the resources required for the completion of the Palmillas-Apaseo El Grande toll road in the states of Queretaro and Guanajuato, in Mexico.

Fomento a la Energía e Infraestructura de México (EXI) is a fund listed in the Mexican stock market with funds of Ps. 2,373  million. The fund is managed by Mexico Infrastructure Partners (MIP), an independent Mexican fund manager of alternative investment vehicles.

ICA had secured in 2013 a MXN 5.68bn (USD 445 million) 10-year loan with a 30-month grace period from Banobras, Banorte and Santander to finance the project.

Autovía Queretaro, S.A. de C.V., a subsidiary of COVIMSA, holds the 30-year concession to construction, operate, exploit, preserve, and maintain the highway.

The Palmillas–Apaseo El Grande tollroad is one of the most important construction projects in Mexico. The 4-lane, 86 km, high-specification toll road in Queretaro and Guanajuato is expected to reduce traffic congestion resulting from the sustained economic growth of the region.

The road that will avoid the increasingly complicated Querétaro transit and will be a more efficient connection to the dynamic industrial corridor, Bajio. The project includes the construction of nine junctions, construction of 15 bridges and 29 overpasses.

This agreement ensures all the resources that are required to finalize the construction and putting into service of the highway. ICA expects that the construction phase will be completed in September 2016, and the highway will join ICA’s existing portfolio of five operating highways.

ICA won the tender process in 2012 beating a consortium composed of Aldesa and GBM Infraestructura.