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Atlantia, through its Chilean subsidiary Grupo Costanera, has been awarded the tender for the concession of the project Américo Vespucio Oriente Príncipe de Gales - Los Presidentes (AVO II) in Chile.

Atlantia holds 50.01% of the equity of Grupo Costanera, whilst the remaining 49.99% is owned by CPPIB, a professional investment management organization that invests the funds of the Canada Pension Plan on behalf of its 20 million contributors and beneficiaries.

AVO II project consists in the construction and operation of a tunnel stretch of urban toll road in the city of Santiago for a length of 5.2 km with free flow tolling. In addition to the construction of the tunnel, the project includes works for the improvement of the ground urban mobility and related areas.

The construction is expected to begin in the fourth quarter of 2018, with a period of 45 year concession.

The estimated cost for the realization of the works consists in ca. US$592 million, less than two times the yearly gross operating margin generated by Grupo Costanera. 

Thanks to AVO II the Grantor - Ministerio de Obras Publicas (MOP) – has completed the award of all the concessions of the entire Santiago ring road.

The AVO II stretch is located in the Eastern section of the Santiago ring road and constitutes the prosecution of the Vespucio Sur concession, 100% owned by Grupo Costanera.

The consolidated positioning of the Group in the country as well as the experience accumulated in the construction of complex infrastructural works in the urban area of Santiago – such as the realization of Costanera Norte and of the Santiago Centro Oriente works – allowed Atlantia to submit the most competitive offer thanks to design optimizations, operating and financial efficiencies, at the same time maintaining an attractive return on the investment.

As we reported, the MOP launched the tender process in August 2016 and in June 2017 received five bids for the road. Besides Grupo Costanera, the following consortia also submitted bids for the project:

• Vespucio Oriente Express consortium, formed by Concesiones Infraestructura Chile Dos and Italy's Salini Impregilo.
• Consorcio Vespucio Oriente made up by Spain's Sacyr and OHL Concesiones.
• Cintra (Spain).
• China Harbour Engineering Company (CHEC).