Paraguay road contract financing model changed

A different financing model will now pay for work to upgrade Paraguay’s Route 2 road link. The initial plan by the consortium holding the concession for the route, Rutas del Este, was to use loans to pay for the necessary widening work. Instead the firm is now using a more complex system, issuing bonds worth US$290 million as well as a $200 million loan from BID Invest. In addition, the firm is using $83 million of its own funds for the work. In all $573 million is now in place to carry out the maintenance, upgrading and widening work for Route 2. Rutas del Este is owned by 3959 Sacyr and Ocho A, with the former holding a 60% stake and the latter, a 40% stake in the business. The project is being operated under the PPP model and Rutas del Este has a 30-year concession package for Route 2.