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Project Profiles


Location	Northern Puerto Rico
Project Sponsor / Borrower	Puerto Rico Public-Private Partnerships Authority Puerto Rico Highways and Transportation Authority
Program Areas
Mode	Toll Highway
Description	PR-22 (also known as the Jose de Diego Expressway) is a 52-mile, 4- and 6-lane toll highway that stretches westward from San Juan to Arecibo along Puerto Rico's northern coast. It is considered part of the U.S. Interstate Highway System as a component of the unsigned Interstate PR-2. The road was constructed over a period of 10 years beginning in 1971 and is the island's most heavily traveled. The journey along the nearest parallel untolled road averages about 45 extra minutes. PR-5 (Rio Hondo Expressway) is a 2.5-mile eastward extension of PR-22 to Puerto Rico's second most populous city (Bayamon) that opened in 2006. An RFP to lease the two toll roads was issued in June 2010 and a preferred bidder selected one year later. The total $1.436 billion administrative concession will finance, rehabilitate, operate, and maintain the facilities over 40 years. Of that total, $1,080 million is an upfront payment of which at least 90% will be used to defease all outstanding tax-exempt toll-revenue debt ($902 million), and approximately $350 million will be expended on expected upgrades over the concession period, $56 million of which will be spent in the first three years on "accelerated safety improvements." Existing flat rate tolls (currently about 6.5 cents per mile and last increased by 45% in 2005 after 14 years) cannot be increased until 2014, and the rate is capped at the U.S. CPI plus 1.5%.
Cost	$1,436 million - Total Administrative Concession $1,080 million - Lease Payment $356 million - Upgrades and Safety Improvements
Funding Sources	Sources To be determined (private equity and senior bank debt) Uses of Lease Proceeds $1,080 million - Total Lease Payment $902 million - Public Debt Defeasance on PR-22 & PR-5 $178 million - Value Extraction
Project Delivery / Contract Method	Not applicable
Private Partner	Autopistas Metropolitanas de Puerto Rico, LLC (55% Goldman Sachs Infrastructure Partners II. L.P., 45% Abertis Infraestructuras)
Project Advisors / Consultants	To the Government of Puerto Rico: Financial and Procurement Advisor: Macquarie Capital Technical Advisor: URS Caribe, Roper Industries Local Legal Counsel: Pietrantoni, Mendez & Alvarez, LLP U.S. Legal Counsel: Allen & Overy
Lenders	To be determined
Duration / Status	Concession agreement signed June 27, 2011 40-year lease to commence at financial close (maximum 90 days following concession agreement signing)
Financial Status	Financial close is expected in September 2011. The private partner's winning bid included a finance plan with $680 million in financing from a group of 12 banks.
Innovations	First P3 toll road under the Puerto Rico P3 Act of 2009 (and P3 toll road brownfield project in the U.S. since 2006)
Related Links / Articles	Puerto Rico Public-Private Partnerships Authority P3 Authority Press Release (June 20, 2011) Final Partnership Report (June 9, 2011) Caribbean Business article (June 20, 2011)
Contacts	Not available