Two groups bid for Chile's Vespucio Oriente highway

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Two groups bid for Chile's Vespucio Oriente highway

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Chile's public works ministry MOP received two technical bids for the Américo Vespucio Oriente highway concession in Santiago de Chile.

A consortium composed of Cintra (Ferrovial) and Brookfield, and another consortium formed by OHL Concesiones and Sacyr Concesiones Chile have submitted technical offers

MOP will receive economic proposals for the concession on January 28th, 2014.

MOP announced in 2012 that 14 firms had been prequalified for the project. The local press reports that two consortia, one composed of Atlantia and Canada Pension Plan Investment Board and another led by ACS, decided not to submit a proposal. A potential new fiscal legislation and a potential change in the scope of the project after the submission of bids could be part of the problem.

It is of special interest the absence of ACS, which had submitted a bid for all the highway concessions in Chile during the last years.

In November 2013, the Public Works Ministry (MOP) said the budget initially estimated at around US$860 million would now go up to US$975 million for the 40-year concession that entails building and operating a 9.3km underground expressway running from El Salto avenue to Príncipe de Gales avenue under the current Américo Vespucio beltway.

The highway is the missing link of the city's beltway. The rest of stretches were built more than seven years ago and they are operated though a system of free flow tolls, which form a pioneer system in the world.

Vespucio Oriente highway will be built on two levels, each with a three-lane expressway. In July, the Government announced that the project would be split in two to reduce complexity. Road capacity will increase to 8,000 vehicles per hour from the current 3,000 vehicles per hour.

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