Puebla takes road concession back from concessionaire

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Puebla takes road concession back from concessionaire

The Puebla Toll Roads Agency (Carreteras de Cuota Puebla) has taken back the concession for the construction, operation, and maintenance of the Cuapiaxtla-Cuacnopalan road project in Mexico.

The project had been awarded to Osa Constructora y Edificadora, a subsidiary of Oceanografía S.A., on 23 December 2011. However, the company did not fulfilled its obligation to to complete the works by February 20th, 2014.

After that, the Puebla state government initiated the proceedings to recover the concession from the concessionaire. On March 5th, the process was terminated and the project is now in public hands again.

The project involved the construction, operation and maintenance of the 63.6 km highway for a period of 30 years. The project included the construction of 4  junctions, 14 overpasses for vehicles, 30 overpasses for pedestrians and cattle, 12 overpasses for agricultural machinery, 21 underpasses for vehicles, and 2 bridges.

The project cost was estimated at P662 million (US$50.1 million).

In November 2013, a Mexican judge ordered the Puebla state government to compensate Spanish infrastructure developer OHL for canceling its concession to build and operate Puebla's Libramiento Norte highway.

The court ruled that the state acted legally in withdrawing the concession under the legal concept of "recovering a public good," but it established that OHL must be compensated.

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