Argentina launches tender for US$8 billion road PPPs

Argentina launches tender for US$8 billion road PPPs

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Ministry of Transportation of Argentina has published a call for tenders for the design, construction, expansion, improvement, repair, remodeling, operation, maintenance and commercial exploitation of the Network of Highways and Safe Routes PPP Project Stage 1. The estimated total investment is US$8 billion.

The purpose of the project is to modernize more than 3,400km of national routes split into six road corridors A, B, C, E, F and South to improve road safety and reduce logistics costs. Segments will be converted into highways, semi-highways and safe routes. Highways will have two 3.65m lanes each way, a 1.8m hard shoulder and a central reservation. Safe routes will have one 3.65m lane each way, a 1.8m hard shoulder and a third 3.65m lane alternating sides. 

Corridor A involves the construction of 116km of highway between Las Flores and Azul, and the conversion of 270km between Azul to Coronel Dorrego to a safe route. These road segments are both in National Route (RN - Ruta Nacional) 3. The RN 226 will be adapted to a semi-highway between Azul and Olavarría and from Balcarce to Azul, it will become a safe route of 174km.

Corridor B consists of the construction of 113km of highway between Mercedes and Bragado and 31km between Santa Rosa and Anguil. In addition, the 372km that go from this town to Bragado will be converted to a safe route.

Corridor C includes the construction of two sections of the RN7, one of 6km in the town of Desaguadero and another 23km in La Picasa, 421km of safe route from Junín to the intersection with San Luis and Luján de Cuyo Potrerillos. 102km of RN 33, from Gral. Villegas to Rufino, will also become a safe route.

Corridor E involves a highway on the RN-A012, a third lane on the RN 9 and a variant on the RN 11, at the height of the ports of Timbues and San Martin. In addition, the accesses to the ports of Rosario, San Nicolás and Zárate will be intervened.

Corridor F consists of the construction of 161km of highway on RN 33, between Rufino and Rosario, repair of 36km of the Rosario-Córdoba highway, and construction on RN 9 of 77km of highway, between Córdoba and Villa del Totoral.

Corredor Sur concerns 76km of highway on RN 3, between San Miguel del Monte and Las Flores, 43km between Cañuelas and Lobos and 36km from Lobos to Roque Pérez, on RN 205.

These are six of fifteen routes that form the Ministry's Highways and Safe Routes Network. The network encompasses 7422km of road. The total investment required is estimated to be US$35 billion. The projects are being tendered in three stages. The Ministry plans to invite bids for the second and third stages in May and September 2018 respectively.

The deadline to submit bids for this first phase of the project is 3 April 2018. For more information, see the Business Opportunity. Contract award and commercial close are scheduled on 10 and 18 April respectively, so it is estimated that the construction will begin in the second half of the year.

The projects will be financed mainly through the diesel tax. Also users of the roads will pay toll charges.

The use of public-private partnerships is advocated by the government as increasing competitive investment in infrastructure while complying with fiscal goals and reducing the deficit. The government's pipeline of PPP programs represents around US$30 billion of new investments in 60 projects. These projects are spread across the Transport, Energy, Water and Sanitation and Health sectors.

Share this news