IIC Grants A $4 Million Dollar Loan To Camino A Las Sierras

09/25/2001

Washington, D.C. - The Inter-American Investment Corporation (IIC) announced on September 26, 2001 the approval of a ten-year, $4 million loan to the Uruguayan company Solenur S.A. (whose name is being changed to Camino a las Sierras S.A.)

The loan proceeds will be used for reconstructing and maintaining a section of Route 8 between the cities of Pando and Minas in Uruguay, covering a distance of some 82 km. Reconstruction includes repaving a section of the road, repairing the shoulders, building a grade-separated crossing at the intersection with Route 11 and an at-grade junction at the intersection with Route 82, improving the lighting and signage, and reinforcing a bridge.

The operation shall be undertaken under a concession scheme, receiving the revenues from an existing toll. The duration of the concession shall be such as to ensure repayment of the amount proposed in the bid, and has been estimated at twelve years. This is the first project in which the IIC has financed a toll road under a concession scheme.

Route 8 is one of the two main routes connecting Uruguay with Brazil, its main trading partner. Recovery of this road will help improve commercial traffic between the two countries. Route 8 also links Montevideo to a significant rice producing, cattle raising, and forestry product area.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed/Felipe Varela

Telephone: (202) 623-3981

Email: stevenr@iadb.org