Bureaucracy Threatens Highway Concession

Because of the lack of progress in Congress and the fact that 2019 is an election year, there is a risk in Guatemala that the concession to rehabilitate and operate the Escuintla-Puerto Quetzal Highway will not be granted.

Thursday, March 7, 2019

In July 2018, the Consorcio Autopistas de Guatemala was awarded the contract for the rehabilitation, maintenance and administration of the Escuintla-Puerto Quetzal highway, with toll collection.

However, it is still expected that the Congressional Committee on Communications, Transportation and Public Works will issue a favorable opinion to the project's bill, which is under the Public-Private Alliance (PPP) scheme.

See "Construction and Management of Highway Awarded" and "Highway Concession Confirmed".

Roberto Sagastume, executive director of the National Agency of Alliances for the Development of Economic Infrastructure (Anadie), explained to Prensalibre.com that "... the members of the aforementioned commission still do not give their opinion on the bill, which was presented in October 2018. The draft contract has a one-year approval period, i.e. it will end in October 2019."

Sagastume added that "... The commission still does not rule and once the opinion is ready the contract will pass to the plenary for discussion in first, second and third reading. We have presented on several occasions information that has been required on the report."

Javier Zepeda, executive director of the Chamber of Industry of Guatemala (CIG), said that "... There is a political risk that the contract may not move forward this year because it is an electoral period, as well as the freezing of the legislative agenda."

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More on this topic

Politics vs. Development

October 2019

The Guatemalan Congress voted against the bill that granted a private company the concession to rehabilitate and operate the Escuintla-Puerto Quetzal Highway, which will require the presentation of a new bill to revive the road project.

Since the beginning of 2019, the spotlights were placed on this project, since in April members of the National Council of Alliances for the Development of Economic Infrastructure (Conadie) visited the Congress of the Republic, with the objective of knowing the progress of the initiative of the public-private alliance project, which at that time was in the hands of the Commission of Communications, Transport and Public Works.

Approval for Highway Concession

August 2019

After months without progress being reported in the process, the Communications Commission of the Guatemalan Congress issued a favorable opinion to the bill to rehabilitate and operate the Escuintla-Puerto Quetzal Highway.

The procedure has been delayed by several months, as the dossier was submitted from 5 October 2018 and only on 6 August received a positive opinion from the Committee on Communications, Transport and Public Works.

Highway concession project in progress

October 2018

The contract to restore and manage the Escuintla-Puerto Quetzal highway with toll collection, awarded to the Consorcio Autopistas de Guatemala, is already in the Congress awaiting approval.

The National Council of Alliances for the Development of Economic Infrastructure (Conadie) approved in early August the action of the Evaluation Commission that decided to award the contract for the restoration and administration of the road section to the Consorcio Autopistas de Guatemala.

Highway Concession Confirmed

August 2018

In Guatemala, confirmation has been given of the award of a contract to renovate and manage the Escuintla-Puerto Quetzal highway with tolls, to the Consortium Autopistas de Guatemala.

In a meeting held on August 6, the National Council of Partnerships for the Development of Economic Infrastructure (Conadie), unanimously decided to approve the actions of the Evaluation Commission that decided to award the Consortium Autopistas de Guatemala the contract for the renovation and administration of the road section.

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