Chile awards US$250 million road concession to Atlantia and CPPIB
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Grupo Costanera has been awarded the Conexión Vial Ruta 78 Hasta Ruta 68 project, which is expected to cost around EUR200 million (US$244.76 million). The project involves the construction and operation of a new 9.2km motorway in Santiago, the capital city of Chile.
The motorway will link Ruta 78 and Ruta 68, the two main roads connecting Santiago with the port areas of Valparaiso and San Antonio. It will also connect to Costanera Norte, a 43km tolled expressway that runs through northern Santiago, which is 100% owned by Grupo Costanera.
As reported on this platform, in January this year the Ministry of Public Works of Chile announced that Grupo Costanera was the sole bidder for the project. Prior to the public call for bids in September 2017, the company submitted an unsolicited proposal for the project.
The concession period of the project is 45 years. Construction is scheduled to begin in 2021 and last for approximately 23 months.
This project will add to the 313km of motorway that Grupo Costanera manages in Chile. The company's portfolio includes approximately 100km of operational motorways in Santiago.
Atlantia holds up to 50.01% of the share capital of the Grupo Costanera holding company. The other 49.99% is held by Canadian Pension Plan Investment Board (CPPIB).
Once operational, this project will add to a growing number of road concessions in Chile. In March, the government extended the concession to operate and maintain Ruta 78 (also called Autopista del Sol), a 133km motorway that connects Santiago to the port of San Antonio, which is owned by Abertis and Abu Dhabi Investment Authority (ADIA).
Also, in March, the Ministry of Public Works re-launched the tender for the rehabilitation and maintenance of Ruta G-21, which links the eastern districts of Santiago to Farellones, a village in the Andes mountains close to the Valle Nevado, La Parva and El Colorado ski areas.
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