Peru’s government awarded its biggest roadworks project in a decade with a USD 3.4 billion highway concession to a consortium led by toll road operator Cintra, a subsidiary of Spanish construction giant Ferrovial , officials announced on Thursday.
The consortium will invest roughly USD 2.3 billion toward infrastructure and the remaining USD 1.1 billion toward securing land and other expenses.
The government of President Dina Boluarte is seeking to boost Peru’s sluggish economic growth rate, after the economy fell into recession last year in its worst performance since the end of the last century, not counting the downturn from the COVID-19 pandemic.
The concession for the planned 22-mile-long (35 km) highway, slated to connect 12 districts in Peru’s congested capital of Lima, will give the firms 30 years to operate the roads and recoup their investment, according to the government’s investment promotion agency, Proinversion.
Cintra will hold a 35% stake in the consortium, with partners Spanish infrastructure firms Acciona and Sacyr each holding 32.5%.
At an awards ceremony in Lima, Proinversion’s executive director said the expected investment is the country’s largest in 10 years for a road infrastructure project.
The road project should be completed within 9.5 years.
Proinversion said the group will design, build and operate the project’s infrastructure, including tunnels and roadways, all aimed at easing the chaotic traffic in jam-packed Lima and nearby Callao, which together are home to some 10 million people.
“We will only emerge from the recession being a safer and more reliable country,” Prime Minister Gustavo Adrianzen said at Thursday’s ceremony, a day after he announced government commitments of billions of dollars in new spending, including for mining projects.
