Abertis reaches agreement on a ten-year extension to its toll road concessions in Puerto Rico

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Abertis reaches agreement on a ten-year extension to its toll road concessions in Puerto Rico

Metropistas, Abertis' subsidiary in Puerto Rico, has signed an agreement with the Puerto Rico Highways & Transportation Authority (PRHTA) whereby its concession contract for the PR-5 and PR-22 toll roads has been extended by 10 years.

In 2011, the consortium formed by Abertis and the Goldman Sachs funds was awarded the tender to manage these toll roads for 40 years, for a US$1,080 million (€762 million, then) concession fee. Of this, 60 % of this upfront payment was funded by long term debt and 40 % was funded through capital contributions by the partners, Abertis Infraestructuras S.A. (owning 45%), GS International Infrastructure Partners II L.P. (32%), and GS Global Infrastructure Partners II L.P. (23%).

The concessionaire has undertaken to pay the PRHTA US$115 million (approximately €100 million), which will be divided into an initial payment of US$100 million and a second disbursement of US$15 million once a new bi-directional payment system is in operation or by 30 June 2017 at the latest.

By way of compensation for these new obligations, the awarding authority has undertaken to reduce its percentage of revenue shared by the dynamic toll system (DTL) installed on the PR-22 from 50% at present to 25%. In addition, the concession for the two toll roads has been extended by ten years to 2061.

The 83-kilometre PR-22, also known as José de Diego toll road, is the busiest toll road in Puerto Rico. It connects the capital, San Juan, with the city of Arecibo through northern Puerto Rico and serving an area where a number of major industrial and pharmaceutical multinationals are located.

The PR-5, which opened in 2006, is a four-kilometre extension of the PR-22 running through the San Juan metropolitan area in Bayamón. The PR-5 also links to the PR-6 and PR-2 toll roads and ends at its intersection with the PR-199.

The agreement further underscores Abertis' long-term commitment to Puerto Rico and illustrates the strength of its concession contracts in the country.

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