Spain's Sacyr Concesiones and Peruvian contractor Constructora Málaga Hnos. S.A. have closed financing for Section 2 of the Longitudinal de la Sierra highway concession in Peru.

Specifically, the team has secured an estimated US$200 million in financing from Banco Santander for the project, which has an expected investment of US$400 million. The concession project is backed by the support of COFIDE as financial advisor and structuring agent.

The contract includes construction of a 90 km section of highway, commissioning of an additional 460 km section in accordance with established quality standards and the operation and maintenance of another 875 km of highway for a period of 25 years. Construction has already advanced by 20%.

The Longitudinal de la Sierra will connect the Andean regions from Puno, passing through Cusco, Apurimac, Ayacucho, Huancavelica, Junin, Pasco, Huanuco, Ancash, La Libertad, Cajamarca all the way to the highlands of Piura. It is a route totaling 3,500 kilometers, which now includes 2,000 kilometers of paved roadway and 1,500 kilometers of dirt roads. The government's idea is basically to pave the 1,500 kilometers of dirt roads.

Sacyr already has a strong presence in Peru with projects such as the construction of two hydroelectric plants with the company Generación Andina and the works to upgrade the entire water supply and sewer network in the city of Cerro de Pasco, along with the construction of two hospitals (the Regional Institute of Neoplastic Diseases in the Macro-region of Central Peru and the Román Egoavil Hospital in the district of Villa Rica). Its subsidiary, Sacyr Industrial, will also carry out the work to expand La Pampilla refinery.