The Inter-American Development Bank President Enrique V. Iglesias and two top executives of Concessionária da Rodovia dos Lagos S.A. today signed documents for $29.3 million in financing to support the expansion, operation, and maintenance of a 60-kilometer toll road connecting Rio Bonito, Araruama, and São Pedro da Aldeia in the Region dos Lagos in the state of Rio de Janeiro, Brazil.
The president of Concessionária da Rodovia dos Lagos, Flávio Medrano de Almada, and Sami Farah Jr., the chief financial officer, signed on behalf of the company.
The IDB is supporting the project with a $14,245,000 loan from ordinary capital and is the lender of record for a $15,036,000 syndicated loan, whose funds will be provided by Santander Investment Inc.
In addition, Brazil´s Banco Nacional de Desenvolvimento Econômico e Social is providing a loan of $14,583,000 for the project.
Ellis J. Juan, managing director of Santander Investment, and Hiroshi Toyoda, manager of the IDB Private Sector Department, signed the subscription of participation agreement for the syndicated loan.
The project includes the rehabilitation and duplication of the existing 30-kilometer RJ-124 road section between Araruama and Rio Bonito, expanding the highway to two lanes in either direction; the construction of a 26-kilometer four-lane highway, parallel to the existing RJ-106 route, connecting Araruama and São Pedro de Aldeia; construction of a toll plaza; and rehabilitation of the last 4-kilometer section of Route RJ-106.
The investment is designed to encourage private sector risk capital investments and to support long-term financing in Brazil for private infrastructure projects. It will help relieve traffic congestion, reduce the operational costs of vehicles, improve safety, and provide prompt medical and technical assistance to motorists, among other benefits.
Concessionária da Rodovia dos Lagos S.A., has a 25-year concession from the state of Rio de Janeiro to operate and maintain the toll road. Construtora Andrade Gutierrez, Camargo Corrêa, S.A., and Serveng Civilsan are the project sponsors.