How the Center for Innovative Finance Support Office Does Business...
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About Us |
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Capacity Building |
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Outreach/Awareness |
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Research |
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Technical Assistance |
Location |
Northern Puerto Rico |
Project Sponsor / Borrower |
Puerto Rico Public-Private Partnerships Authority Puerto Rico Highways and Transportation Authority |
Program Areas |
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Mode |
Toll Highway |
Description |
PR-22 (also known as the Jose de Diego Expressway) is a 52-mile, 4- and 6-lane toll highway that stretches westward from San Juan to Arecibo along Puerto Rico's northern coast. It is considered part of the U.S. Interstate Highway System as a component of the unsigned Interstate PR-2. The road was constructed over a period of 10 years beginning in 1971 and is the island's most heavily traveled. The journey along the nearest parallel untolled road averages about 45 extra minutes. PR-5 (Rio Hondo Expressway) is a 2.5-mile eastward extension of PR-22 to Puerto Rico's second most populous city (Bayamon) that opened in 2006. An RFP to lease the two toll roads was issued in June 2010 and a preferred bidder selected one year later. The total $1.436 billion administrative concession will finance, rehabilitate, operate, and maintain the facilities over 40 years. Of that total, $1,080 million is an upfront payment of which at least 90% will be used to defease all outstanding tax-exempt toll-revenue debt ($902 million), and approximately $350 million will be expended on expected upgrades over the concession period, $56 million of which will be spent in the first three years on "accelerated safety improvements." Existing flat rate tolls (currently about 6.5 cents per mile and last increased by 45% in 2005 after 14 years) cannot be increased until 2014, and the rate is capped at the U.S. CPI plus 1.5%. |
Cost |
$1,436 million - Total Administrative Concession
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Funding Sources |
Sources - $1,280 million debt/equity
Uses of Lease Proceeds
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Project Delivery / Contract Method |
Not applicable |
Private Partner |
Autopistas Metropolitanas de Puerto Rico, LLC (55% Goldman Sachs Infrastructure Partners II. L.P., 45% Abertis Infraestructuras) |
Project Advisors / Consultants |
To the Government of Puerto Rico:
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Lenders |
12-bank club
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Duration / Status |
Concession agreement signed June 27, 2011 (40-year lease) |
Financial Status |
Financial close September 2011 |
Innovations |
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Related Links / Articles |
Puerto Rico Public-Private Partnerships Authority |
Contacts |
Not available |
