MIGA guarantee sought for Touristic corridor concession

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MIGA guarantee sought for Touristic corridor concession

The investors and lenders of the Touristic corridor highway PPP project in Honduras have applied for Multilateral Investment Guarantee Agency (MIGA) guarantees.

The project's investors are C.I. Grodco S.de C.A. of Colombia, and PRODECON, S. A. de C. V., of Honduras. The project's lenders are Corporación Interamericana para el Financiamiento de Infraestructura, S.A. (CIFI) of Panama, and JPMorgan Chase Bank, N.A. (London Branch) of the United States.

The project's investors and lenders have applied for MIGA guarantees of up to US$318 million for a period of up to 20 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.

The 220 kilometer toll road in northern Honduras connects the cities of San Pedro Sula, La Barca, El Progreso, Tela, and La Ceiba. The construction works for the project consist primarily of rehabilitation works for 214 kilometers of roads, 99 kilometers of which will be expanded from two to four lanes, and the construction of a new 5.9 kilometer four-lane bypass.

The project will be developed under a design, build, finance, operate, and maintain scheme for 30 years.

The project will improve connectivity across the main cities in northern Honduras, which will provide opportunities to further develop the country's transport sector and commerce, and potentially the tourism sector in the northern part of the country.

This year we have reported about five more transport PPP projects in Honduras:

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