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Wednesday, January 20, 2010
Today's News Headlines
* Consorcio Vial Chile wins Camino de la Fruta highway concession - Chile
* FEATURE: Piñera's infrastructure plan to focus on multimodal transport - Chile
* María Montez airport steps up aid to earthquake victims - Dominican R., Haiti
* Espírito Santo launches US$113mn roadworks tender - Brazil
* DP World spends US$500mn on Muelle Sur, proposes contract change - Peru
* Paranaguá port cargo handling up 2.76% - Brazil
* Colom inaugurates work on 2nd stretch of Guatemala-El Rancho highway - Guatemala
* MTC looks to expand Ositran to speed up infra projects - Peru
* Carretera del Norte expansion at risk if Cabei does not resume relations - Honduras
* Reconstruction to cost US$10bn - Haiti
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* Consorcio Vial Chile wins Camino de la Fruta highway concession - Chile
Chilean consortium Consorcio Vial Chile submitted the winning bid for the concession of the Camino de la Fruta highway, an official from the public works ministry's (MOP) concessions division told BNamericas.
The consortium, comprising Besalco, Icafal and Belfi, submitted a subsidy request of 688,800 UF (inflation-linked units, around US$28.9mn), said the official.
The bidding rules included a possible state subsidy of up to 1mn UF/year over a period of nine years.
The second bidder, Concesiones Viarias Chile - led by Spanish firm ACS' Dragados - submitted an offer with a 715,715 UF subsidy request, the official said.
MOP must now carry out a number of administrative tasks before signing the concession contract.
The 138km highway, also known as Ruta 66, will require US$360mn in investment. The awardee will be responsible for the construction, maintenance and operation of the highway for 35 years.
Works will take an estimated four years to complete and also involve the construction of four bridges, the improvement of five existing bridges, one overpass and two underpasses, new access roads, and over 30km of secondary roads and bicycle lanes.
Ruta 66 will connect Chile's central metropolitan region and region VI to region V's San Antonio port, contributing to the development of the country's agriculture trade.
By Eva Medalla
Business News Americas
Editor's Choice
* FEATURE: Piñera's infrastructure plan to focus on multimodal transport - Chile
Chilean president-elect Sebastián Piñera will focus infrastructure development on multimodal transport projects, an official from Piñera's campaign headquarters told BNamericas.
Improved multimodal systems will diminish truck congestion in ports and increase the country's competitiveness by reducing transport time and costs, the official said.
Better cargo transport infrastructure and services are essential to Piñera's government plan, said the official, adding that infrastructure projects will be designed to help achieve the main goals of this plan. These include: increasing investment to 28% of the country's GDP from the current 22%; guaranteeing a minimum annual economic growth increase of 6% during his 2010-14 term; boosting productivity growth from the current -0.5% to a 1.5% annual increase; and creating 1mn new jobs.
Chile's GDP in 2008 was US$170bn, according to the World Bank. GDP for 2009 has yet to be released, although experts have forecast a decrease of 1-1.7%.
Taking 2008's GDP as a base, however, Piñera's plan contemplates annual investments of up to US$47.5bn.
Piñera's transport plan was drawn up by Ana Luisa Covarrubias, director of the independent research institute Libertad y Desarrollo's environment division.
RAILWAYS
Piñera plans to concession railway services to improve cargo handling. The official, however, declined to comment on the future of state-owned rail firm EFE, whose executives have been lobbying with legislators for months to get their support to have the state take over the firm's debt, currently estimated at over 972bn pesos (over US$1.9bn).
MASS TRANSPORT
The new government aims to improve the performance of Santiago's integrated mass transport system Transantiago.
A law passed in 2009 established a temporary subsidy for Transantiago totaling 550bn pesos and an equivalent subsidy to benefit the rest of the country's regions to be disbursed over the 2009-14 period.
According to Piñera, his government will make sure the capital's transport system does not require an additional subsidy beyond 2014.
To accomplish this, the government will offer incentives to bus operators to improve the efficiency of their services and will build new bus lanes, the official said.
The state, however, will continue to provide an annual subsidy of up to 230bn pesos (US$423mn), which will be readjusted annually according to the consumer price index (IPC).
Every year, the funds will be distributed equally between the metropolitan region's Santiago province and districts Puente Alto and San Bernardo, also served by Transantiago, the rest of the metropolitan region and the country's 14 other regions.
The subsidy will be used to cover student fares and investments such as infrastructure improvements.
NEW TRANSPORT PROJECTS
Piñera said his government will build Santiago's metro's line 3, benefitting the northern zone of the capital.
In the meantime, the development of line 6 will be carried out, which will run parallel to the system's line 1 and will help decongest metro's main corridor. The project was announced recently by current President Michelle Bachelet.
At the same time, the new government will look into mass transport alternatives to be developed throughout Chile. Decisions will be made according to demand to make sure all projects are feasible, the official said.
INTERNATIONAL TRANSPORT
In his government plan, Piñera also referred to the need to improve customs services to upgrade the logistics of international cargo handling and reduce transport costs and time, said the official.
This policy was already being implemented in the last few years with the development of new and improved customs points and agreements with neighboring countries to improve services.
Bachelet hands over power to Piñera on March 11.
By Eva Medalla
Business News Americas
* María Montez airport steps up aid to earthquake victims - Dominican R., Haiti
More than 20 helicopters are travelling daily between the Dominican Republic's María Montez airport to Haitian capital Port-au-Prince to transfer medical and food supplies following the earthquake which devastated the city last week, an official from María Montez airport told BNamericas.
María Montez is located 100km from Port-au-Prince in the city of Barahona.
Authorities started operating private flights to alleviate the heavy influx of planes at the Haitian capital's airport, the official said.
"By opening up this airport we are helping to alleviate traffic congestion, allowing more aid to be transferred to Haiti," the official said.
Between January 16 and 17, a total of 50 helicopters flew from Barahona into Port-au-Prince carrying food and medical aid, according to the official.
Roads connecting the Dominican Republic and Haiti are in very poor condition. On the Haitian side, 60km of the road from the border to Port-au-Prince is not paved. The US government has said it will pave the stretch in the next few days.
At the same time, the Dominican Republic's La Isabela airport, located in capital Santo Domingo, is coordinating flights to Haiti.
"The airport is working together with María Montez airport to transfer aid into Haiti," an official from La Isabela airport told BNamericas.
María Montez airport has a 2,565m2 terminal and 3,000m runway. La Isabela is a secondary, newly constructed airport in the north of Santo Domingo. It has a 1,680m runway and operates an average of 65 commercial and private flights per day.
By Indiana Corrales
Business News Americas
* Espírito Santo launches US$113mn roadworks tender - Brazil
Brazil's Espírito Santo state government has launched an international tender for road expansion and rehabilitation estimated to cost 200mn reais (US$113mn), a spokesperson from state roads department (DER) told BNamericas.
Bids must be submitted by February 24.
Technical proposals will be opened first and then the price proposals, the spokesperson said.
Interested parties must have civil construction experience, qualified workers, appropriate equipment, net working capital and present a statement of revenue.
"I cannot say when a final decision will be made as it depends on the amount of bids we get and whether or not competitors contest the decision. It will take at least 20 days," the official said.
The initiative falls under state roads program Programa Rodoviário do Espírito Santo III, which is being managed by DER.
WORKS
The initiative is divided into four sections, according to a release by IDB, which is partially financing the project.
Section one involves widening a 10.5km stretch of highway ES-482 that runs between the municipality of Cachoeiro de Itapermirim and highway ES-166. It has a 900-day completion deadline.
Section two is the rehabilitation of a 38.4km stretch of highway ES-080. The work will take place from the Pancas river bridge to highway ES-137. It must be completed in 720 days.
Rehabilitation of 39km on highway ES-313 makes up section three. The stretch runs from Pinheiros municipality to highway BR-101 and work has a 540-day deadline.
Finally, section four consists of rehabilitating two sections of highway ES-320 totaling 50.4km. One stretch runs between Ecoporanga municipality and highway ES-080 while the other pertains to the section surrounding the municipality of Vila Paulista. The deadline is 720 days, the release said.
By Daniel Bland
Business News Americas
* DP World spends US$500mn on Muelle Sur, proposes contract change - Peru
Global port operator DP World has spent over US$500mn on construction and equipment at the Muelle Sur dock in Peru's Callao port, according to transport minister Enrique Cornejo.
This week, the minister inspected the three new gantry cranes and nine RTGs acquired by DP World.
The new equipment, which represents half of all the machinery that will eventually operate at the port, will allow Peru to receive super post-Panamax ships for the first time, Cornejo was quoted as saying by state news agency Andina.
CONCESSION CONTRACT
Following the inspection, DP World general manager Maciek Kwiatkowski proposed modifying the company's concession contract to allow for increased storage at the dock.
The proposal involves expanding the 22.5ha dock by some 3ha, and would cost a few million dollars, according to Kwiatkowski.
DP World hopes the transport and communications ministry (MTC) will approve the proposal shortly, so that the new concession contract can be signed in the next few weeks, the executive said.
The port operator was awarded the concession of Muelle Sur in July 2006 and will invest US$600mn in the terminal. The dock will have the capacity to handle 850,000 TEUs in its initial operating phase, and will eventually reach capacity of 1.45mn TEUs.
TRAFFIC FORECAST
While container traffic at Callao port fell 12% during 2009, national port authority Enapu expects this tendency to be reversed in 2010, Andina reported.
The authority predicts growth in traffic of up to 20% this year, spurred by an increase in world trade as economies recover from the financial crisis.
The port, Peru's busiest, will also benefit from the free trade agreement that is likely to be signed with China later this year, Enapu president Mario Arbulú said.
By Business News Americas staff reporters
* Paranaguá port cargo handling up 2.76% - Brazil
Brazil's Paraná state port Paranaguá handled 22.7Mt in 2009, up 2.76% from the previous year, according to a release by the Paranaguá and Antonina port authority Appa.
The port exported 14.5Mt of solid bulk in 2009, up 6.2% from the year before and equivalent to 64% of exports and 47% of total cargo handling.
Soybeans led exports at 4.76Mt. Soy meal and sugar followed at 4.75Mt and 3.26Mt respectively.
However, both corn and soy meal handling fell in comparison to the year before due to a lower crop yield and lower prices.
Paranaguá port is the second largest port in Brazil after Santos in São Paulo.
By Business News Americas staff reporters
* Colom inaugurates work on 2nd stretch of Guatemala-El Rancho highway - Guatemala
Guatemala's President Álvaro Colom inaugurated construction work on the second stretch of the Guatemala-El Rancho highway, the presidential website reported in a release.
Works involve expanding the highway from two to four lanes. Two bridges will also be built, the release said.
This 26.9km second stretch runs from Agua Caliente to Sanarate. The complete Guatemala-El Rancho highway is 78km long.
Taiwanese construction firm Overseas Engineering & Construction (OECC) will carry out the expansion project. OECC was also responsible for the 11.3km first stretch which runs from Palencia to Agua Caliente, local paper Prensa Libre reported.
Total project cost is US$67mn, of which Taiwan donated US$40mn. The Asian country donated US$17mn for the highway's first phase.
Taiwan's ambassador to Guatemala, Adolfo Sun, was also present at the start of works.
By Business News Americas staff reporters
* MTC looks to expand Ositran to speed up infra projects - Peru
Peru's transport and communications ministry (MTC) is considering increasing the number of technical personnel at transport regulator Ositran to speed up the approval process for transport infrastructure projects.
While Ositran is currently working well, a larger staff would allow it to work more efficiently and increase productivity, according to transport minister Enrique Cornejo.
The regulator has only 10 days to rule on a project's feasibility, but is often hampered by having to request more information right before the deadline, Cornejo added.
"Regulators must have the autonomy and time to do their work, but they must also collaborate with their country, doing their job with the speed that is required," the minister was quoted as saying by state news agency Andina.
Peru's economy has successfully emerged from the financial crisis and needs to speed up infrastructure projects to ensure continuous growth over the next few years, Cornejo said.
By Business News Americas staff reporters
* Carretera del Norte expansion at risk if Cabei does not resume relations - Honduras
The Central American Bank for Economic Integration (Cabei) will decide by end-January whether or not to reestablish economic relations with Honduras and disburse the funds offered to expand the Carretera del Norte highway, local paper El Heraldo reported.
The bank suspended relations with Honduras following the coup that took place in June 2009.
If the bank does not reestablish its relationship with Honduras, construction work on the highway, along which 13,000 vehicles travel every day, may stop in March, the report said.
Cabei approved a US$130mn loan to finance the Carretera del Norte highway expansion from two to four lanes. The highway connects national capital Tegucigalpa with Cortés department capital San Pedro Sula.
By Business News Americas staff reporters
* Reconstruction to cost US$10bn - Haiti
Some US$10bn will be needed over the next five years to reconstruct Haiti in the wake of the earthquake that devastated capital Port-au-Prince last week, according to the Dominican Republic's President Leonel Fernández, local paper Hoy reported.
The figure was reached at a conference held in Dominican Republic capital Santo Domingo with the participation of 76 representatives from different countries and international aid organizations.
During the conference a committee was created to develop a strategic plan for Haiti's reconstruction. The participants also agreed to request a waiver for Haiti's international debt and to create a special development fund for the country with the capital and interest payments made by Latin American and Caribbean countries to the Paris Club.
The committee will meet again in Montreal, Canada on January 25. In April, a follow-up meeting will be held in the Dominican Republic.
Meanwhile, European and Latin American authorities are organizing a meeting to be held in Spanish capital Madrid from May 16- 18 to discuss a strategic action plan for Haiti's reconstruction.
The conference in Santo Domingo counted on the presence of the prime ministers of the Bahamas, Barbados, Canada, Dominica and Trinidad & Tobago. The president of IDB, a World Bank representative and the UN secretary general Ban Ki-moon also participated. The governments of the Dominican Republic, Brazil, Mexico, Chile, the US, Jamaica and the European Union, among others, were also present.
By Business News Americas staff reporters
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In-deph interview
* Railway transport is a feasible solution
Jorge Dublé
General manager
Icil Icafal
Chile, Regional
http://www.bnamericas.com/interviews/infrastructure/Jorge_Duble_,Icil_Icafal,/170693556
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Main companies covered in today's news
* Conconcreto S.A.
http://www.bnamericas.com/company-profile/en/Conconcreto_S,A,-Conconcreto/170693556
* Ministerio de Transportes y Comunicaciones
http://www.bnamericas.com/company-profile/en/Ministerio_de_Transportes_y_Comunicaciones-MTC_Peru/170693556
* The World Bank Group
http://www.bnamericas.com/company-profile/en/The_World_Bank_Group-World_Bank/170693556
* Votorantim Cimentos Ltda.
http://www.bnamericas.com/company-profile/en/Votorantim_Cimentos_Ltda,-Votorantim_Cimentos/170693556
* Administração dos Portos de Paranaguá e Antonina
http://www.bnamericas.com/company-profile/en/Administracao_dos_Portos_de_Paranagua_e_Antonina-APPA/170693556
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