IJGlobal 2019 awards Ferrocarril Central, the largest PPP financing in Uruguay

The renowned project and infrastructure magazine IJGlobal, awarded Ferrocarril Central, the largest infrastructure project in the history of Uruguay.

The project consists of the construction and maintenance of a 276 km railway connecting the departments of Montevideo and Tacuarembó, in central Uruguay, where the Finnish forestry company UPM is building its second pulp mill in the country. This investment by UPM is expected to exceed US$ 3 billion.

"With an innovative structure, financing had four tranches of senior debt, including a combination of a dollar-based fixed-rate loan from IDB invest, a UI-fixed rate trance from CAF, and a swap in dollars from commercial lenders", the magazine pointed out. 

The Via Central Group, composed of Sacyr, NGE, Saceem and Berkes obtained the largest financing in Uruguay's history -up to US$ 855 million- to finance the railway project.

The Ferrocarril Central project also includes a dozen secondary tracks for train crossings, a section of track for industrial access and more than 40 railway bridges. In addition, nine passenger trains in each direction will connect Montevideo with the city of 25 de Agosto (Florida) every day, with their corresponding stops.

Dentons Jiménez de Aréchaga advised the consortium throughout the bidding process, as well as in the financing section. Fernando Jimenez de Arechaga (jr), partner of the firm said that the financing was one of the largest and most complex that Uruguay has seen and that it was completed in a limited period of time. 

"This is a historic transaction in Uruguay," he said. "We are proud to be mentioned because we advised the Consortium from the bidding process to the successful closing of the transaction. It is very gratifying to work for projects of this magnitude to be developed in Uruguay".

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