FERRERE advised Rutas del Mercosur S.A. on signature of a public-private partnership agreement (PPP), for expansion and improvement of 108 kilometers on highway Ruta PY01, from Cuatro Mojones to Quiindy. The agreement with the Government of Paraguay, through the Ministry of Public Works and Communications (MOPC), was executed on January 5 and involves an estimated investment of over USD 414 million. It is the second PPP in Paraguay, following the one for routes 2 and 7.
The partnership will have a duration of 30 years and includes construction as well as operation and maintenance of the infrastructure.
The agreement’s payment structure includes deferred investment payments (DIP) of USD 24,077,936.70 (including VAT) each, to be paid in 30 half-yearly installments over 15 years. Payments will begin to come due as of provisional commissioning of the works. During construction, the shareholders of Rutas del Mercosur will make a capital injection of 80 million US dollars in the company that will carry out the project.
FERRERE worked together with the awardee companies that are shareholders of Rutas del Mercosur S.A. (Alya Constructora S.A., Semisa Infraestructura S.A., Tecnoedil S.A. Constructora and Construpar S.A.) throughout the entire process, from the bid preparation stage to organization of the special purpose vehicle, and signature of the PPP agreement.
FERRERE’s involvement also included advice on financing, provided by Banco Continental S.A.E.C.A., to fund part of the capital contribution by the shareholders of Rutas del Mercosur S.A. In this connection FERRERE’s work included structuring, drafting and negotiating the financing documents and the guarantee package under Paraguayan law.
The advice was led by partner Carlos Vasconsellos and counsel Claudia Arietti.