Tender for US$1 billion road PPP launched in Ecuador

Tender for US$1 billion road PPP launched in Ecuador

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The Government of Ecuador's Ministry of Transport and Public Works has launched a tender for the design, financing, construction, operation and maintenance of the Guayaquil Southern Viaduct. The total estimated investment of the project is US$1.14 billion.

The project spans a total length of 44.2km and is split into four sections. The first concerns a 7.64km dual carriageway (two lanes in each direction) linking the edge of the city of Guayaquil, located in Guayas province, western Ecuador, to the Guayas River.

The second section entails a 3.44km bridge over the river, providing an additional road link from Guayaquil to Durán, another city in Guayas province. Once complete, it will be the longest bridge in the country.

The third section is the longest - 21.75km of four-lane road between the end of the bridge and Highway 25 (E-25), bypassing Durán. The fourth section comprises an 11.4km extension from km 4.6 of section three to the E-40, travelling almost perpendicular to the third section, also with four lanes.

Both the third and fourth sections contain additional bridges, to be 355m and 30m long, respectively. The selected private partner will also construct and maintain three toll stations along the route.

The total capital expenditure is estimated to be US$666.98 million, while the operations and maintenance costs will amount to US$474.44 million.

The length of the contract will be 44 years - four years for construction and 40 years operation and maintenance.

Interested parties are invited to submit technical and economical proposals for the project until 4 February 2019. The Ministry intends to conduct negotiations with a preferred and reserve bidder between April and June, with the aim of awarding the project between 11 and 17 June 2019. The contract will be signed before 18 September.

The objective of the project is to provide traffic from the south and central regions of Ecuador with a direct route to Guayaquil, the largest and the most populous city in the country, and Guayaquil Port. The new roads will cut journey times and reduce congestion on the streets of Guayaquil, the city's ring road and the current route to Durán.

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