Ferrocarril Central railway project obtains largest ever PPP financing in Uruguay

Jiménez de Aréchaga, Viana & Brause has helped consortium Grupo Vía Central, led by Spanish constructor Sacyr, obtain the largest project financing ever in Uruguay – worth US$ 900 million – to fund a public-private partnership (PPP) railway project connecting Montevideo and Paso de los Toros.

This is the largest PPP project and the largest project financing in Uruguay’s history and is part of the infrastructure needed for the biggest investment in Uruguayan history for the project of UPM 2.

The project aims to construct and maintain 273 km of railroad tracks, between Montevideo port and the city of Paso de los Toros in Tacuarembó department. This is a very relevant infrastructure project for Uruguay’s transport industry. The central railway will increase the circulation of freight trains to 80 km/h and 22,5 tons drive axle load. The project includes a double railroad of 26km, 12 secondary railroads for train circulation, exclusive railroad for industrial access and more than 40 rail bridges.

About the transaction, Fernando Jiménez de Aréchaga (jr) said: Our team assisted the consortium in a very intense bidding contest and through all the stages of a financing process which was the largest and probably the most complex that our country has ever known, with several counterparties and a tight schedule to reach financial close. This is a landmark transaction for Uruguay and we are very proud of having been at the drivers’ seat since its very inception.”