More Toll Roads

In Guatemala a proposal has been made for private companies to build toll roads, where, in some cases the State pays for the tolls, instead of charging road users.

Wednesday, October 11, 2017

The proposal of this investment model was raised in the context of the National Entrepreneurs Encounter (Enade), focused this year on the theme of infrastructure. 

Juan Carlos Paiz, president of Enade, explained that "... The idea is that some roads would be built with private investment but run with a toll paid for each user and others with payments from the State but not by direct investment but through tolling, for a set period of time."

Paiz explained that at the moment road users "practically pay a toll", because the oil derivatives tax (IDP) is included in the cost of a gallon of gasoline. 

See: "Progress in the Escuintla- Puerto Quetzal Tender"

"... ´We have not determined if the model should be with the form of a toll´ added Paiz but he referred to the fact that they have analyzed cases from a lot of countries where this scheme is used. In these there are roads in which the client or the user is not charged every time they use the road, but the resources come from the taxes that are paid to the State, and the State in turn pays the company in charge of each stretch of road, for each passing vehicle." reports that "...Based on these models, the Enade´s idea is that on roads that are not profitable (either because of the low number of vehicles passing through or because users in that area do not have sufficient purchasing power), they would use the aforementioned form of payment where the State pays."

Currently there is a project to build a private toll road in the municipality of Villa Canales. The environmental impact study submitted in March this year details that it will have 6 lanes and be 9 kilometers in length, and will connect at kilometer 23 of the Carretera to El Salvador and Via Alterna del Sur.

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More on this topic

Negative Message to Investors

October 2019

For the Guatemalan business sector, the decision by Congress to vote against the bill granting the concession to rehabilitate and operate the Escuintla-Puerto Quetzal highway "sends a negative message to potential investors."

The first positions emerge after learning that the Congress of the Republic buried the road project to rehabilitate and administer the highway Escuintla-Puerto Quetzal with toll collection, which would be granted in concession to the Consorcio Autopistas de Guatemala, under the format of Public-Private Partnership.

Bureaucracy Threatens Highway Concession

March 2019

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.

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.

Companies Prequalified for Roadworks in Guatemala

September 2016

A tender is being launched for a project to renovate, manage, operate, maintain and provide additional works for the Escuintla-Puerto Quetzal highway.

Guatemala Government Purchase 5414121:

"The National Agency of Partnerships for Economic Infrastructure Development (ANADIE) is inviting individuals and legal persons who meet the requirements of these Prequalification Rules, to express their interest in participating in the prequalification phase, which aims at, prior to the eventual opening of bids, creating a list of prequalified entities who may participate, as appropriate, in the Tender Project of the Partnerships for Economic Infrastructure Development called "renovation, management, operation, maintenance and additional works for the highway Escuintla-Puerto Quetzal with toll collection," which has the objective of improving, acquiring right of way, operating and maintaining the 2 tracks that make up the stretch of road Escuintla - Puerto Quetzal, whose administration and road management will be financed through tolls.

Public Private Partnership Bill Stalls

October 2011

In Panama, medical professionals, who have now been on strike for a week, have opposed the project, forcing the legislative process to be suspended, until a consensus can be reached.

The main concept of the bill is that, in contrast to the traditional scheme, where companies are simply contracted by the State for the construction or development of public works, under the adoption of the PPP regime, the private sector would play a greater role in projects, funding the work and then receiving payment for the provision of services, on long-term contracts.

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