PPP Contractor Contemplates International Arbitration Amid Delayed Guatemala Highway Project

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The consortium contracted to upgrade and expand the Escuintla-Quetzal port highway said it is ready to pursue international arbitration over the delayed Guatemala highway project.

The inaugural public-private partnership (PPP) in the nation has been granted to Convía, a consortium comprising the Mexican company Marhnos and the Guatemalan firm Precon. However, the Ministry of Communications, Infrastructure, and Housing (CIV) recently rejected the final engineering studies submitted by the consortium. These studies encompass the technical details of the project, covering aspects such as the highway, intersections, civil engineering, and administrative and office works. According to Guatemalan law, these studies must receive approval from the ministry. The consortium has made efforts to align with the authorities' requirements, including adapting to the use of asphalt instead of concrete.

The initial PPP in Guatemala entails a 25-year concession for the expansion and operation of the 43 km highway connecting Escuintla and the Quetzal port, a contract awarded in July 2018. This agreement also includes repair activities and the installation of toll booths, linking the municipalities of Escuintla, Masagua, Iztapa, and San José.

List of the country updates

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  • July 13, 2018

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