Contractual complications stalling Guatemala’s Escuintla-Puerto Quetzal Toll Road PPP are likely to be resolved by April (2024), IJGlobal has learnt – opening the road to FC.

The project sponsor, Convía, has already secured a $120 million debt package, set to be signed once the contractual issues are ironed out, sources say.

The financing is provided by:

• Banco Industrial Guatemala – $84 million (70%)
• Banco GyT – $36 million (30%)

The loan will have a 15-year tenor and will disburse to the sponsors as works advance, with the first disbursement – valued at around $6 million – occurring when works start.

The PPP’s delay was due to the sponsor’s engineering study which was rejected by state authorities, pushing the road concession past the original contract limit to secure funds in 2023.

Convía has already secured a $10 million bridge loan. The proceeds will be used to construct small improvements to the road before the main works commence.

The 25-year PPP covers the rehabilitation, operation, and maintenance of the 40km highway linking Escuintla and Puerto Quetzal.

Convía is a consortium of Mexico’s Grupo Marhnos and local construction company Precon. The firm was awarded the project in July 2018.

Advisers to the sponsor include:

• Consortium Legal – legal