Infraestructure newsletter

Infrastructure Opportunities Newsletter: Central America & The Dominican Republic

Issue: April 2021

Welcome to the second edition of our quarterly infrastructure newsletter, which aims to keep you up to date with the main procurement processes in the infrastructure sector across Central America and the Dominican Republic, covering a wide range of areas such as water, rail, social infrastructure, road works, among others.

The Department for International Trade remains keen to support British expertise in the sector, and if there is any particular interest in these projects, please do not hesitate to contact us.

Recent Project Announcements and Upcoming Procurement Opportunities

Panama

Infrastructure priorities for 2021

Panama’s infrastructure agenda for 2021 contemplates an aggressive plan for new projects that will be procured through typical tenders, turnkey, and public-private partnerships. The government plans to invest more than US$1.5bn in infrastructure development that will be divided between the Ministry of Public Works, the Metro Authority, state electric company Etesa, Tocumen International Airport’s state operator and mass transport authority Mi Bus, among others.

Ministry of Public Works to tender 20 turnkey projects:
The Ministry of Public Works plans to tender 20 road projects under the turnkey modality to boost the economy in the short term. The value of these projects ranges from US$10m to US$70m, and the government expects to complete most of the payments between 2023 and 2024.

MiBus to tender the acquisition of 200 electric buses:
The Mass Transportation Company of Panama (MiBus) will tender the purchase of at least 200 medium-size electric buses in Panama at the end of April, as part of the National Electric Mobility Strategy, which establishes that by 2030 35% of buses must be zero-emission technology. MiBus is currently working on the final details for the presentation of the bidding document.

$630,000 approved for feasibility studies or Line 5 of the Panama Metro:
The non-reimbursable Technical Cooperation was recently approved by the Republic of Korea within the framework of the CABEI-Korea Sole Donor Trust Fund (KTF), and the implementation of this initiative is scheduled to begin during the second quarter of 2021.

$72M Bus Rapid Transit (BRT) corridor:
The Mass Transportation Company of Panama  plans to develop the first Bus Rapid Transit corridor in the country. The project is currently under the feasibility study phase, and the tender process will be launched by the Ministry of Public Works in 2021 using the turnkey format.

Costa Rica

Costa Rica’s 2021 infrastructure agenda

The infrastructure agenda will focus on 16 highway projects with an estimated value of US$1.9 billion,  including the expansion of 3 major highways, bridges, several overpasses, and the establishment of an Operations Centre for Road Maintenance. Six of these projects will break ground, and the rest are under construction.

$399.2M approved for mega-project that will supply potable water to the Great Metropolitan Area:
The Central American Bank for Economic Integration (CABEI) approved the Costa Rican Institute of Aqueducts and Sewerage (AyA) up to US$399.2 million to finance the Supply Project for the Fifth Stage Metropolitan Aqueduct (PAAM).

$500M approved to equipped and reinforce Hospital Infrastructure:
The Central American Bank for Economic Integration (CABEI) approved US$500 million for Costa Rica to strengthen its hospital network through infrastructure and equipment for three national hospitals. This is the second largest loan approved by CABEI in its history, and will allow the construction of 200,000m²  and the provision of more than 1,000 new beds.

$1.5B Electric passenger train awaits loan approval:
The US$1.5 billion interurban light rail, which would run on an 85km double-track rail line through capital San José, still awaits congressional approval of CABEI’s US$550 million loan that has been pending since May 2020 as the Limón electric freight train emerged as an alternative.

$422M Extension of the Metropolitan Aqueduct:
The project will include the construction of 42 km of steel pipes of more than one metre in diameter (including 8.6 km of tunnels), a new water treatment plant, and four storage tanks of 10,000 cubic metres each. The results for the environmental and social evaluation studies will be completed in the first quarter of 2021.

$450M Limón Electric Freight Train (TELCA):
The project involves rehabilitating a section of the rail line to be used by electric freight trains and building a new electric rail stretch. The project is currently in an early stage, with feasibility studies results expected in the second half of 2021.

$21B Decarbonisation Plan:
The strategy planned for the 2020-2050 period seeks to decarbonize transport, promote sustainable construction and energy and capitalize on partnerships between the public and private sectors. This will include projects to manufacture electric cars and buses, as well as promoting sustainable agriculture.

Nicaragua

 

$115M loan approved for Hospitals:
The project consists of the construction of six pre-industrialized steel modular hospitals in five cities of Nicaragua, with a capacity of 378 beds and their respective equipment. The total cost amounts to US$114.6 million, from which US$85 million will be financed by CABEI and the remaining $29.5 million will be co-financed by UK Export Finance.

Guatemala

The government plans to execute 118 small-medium infrastructure projects to strengthen its connectivity, competitiveness and boost economic growth. These projects include:

· The construction of the Belize Bridge II.

· Expansion of the CA-9 North and South highways.

· Expansion of the main pier of the Santo Tomás de Castilla Port in Puerto Barrios.

· Rehabilitation of the cargo airport in Puerto San José, Escuintla.

$193.2M loan approved to finance Hospital Infrastructure:
 

The Korea Development Co-Financing Facility for Central America and CABEI are financing Guatemala’s “Hospital Infrastructure and Equipment Investment Program” which involves the construction, expansion, and equipment of 5 new national hospitals located in Alta Verapaz, Chiquimula, Jutiapa, Mazatenango, and Sololá. This program is under its disbursement phase to carry out the technical and pre-investment studies.

 

Honduras

The country will focus on the Sustainable Reconstruction Plan following the aftermath of the hurricanes Eta and Iota. Additionally, the government plans to improve the infrastructure for commercial logistics, which will lead to economic revitalization in the country and improve the transportation of goods with neighbouring countries.

$5.8M approved for feasibility studies to build six Earth Dams:
In February, CABEI approved US$5.8 million for technical cooperation for contingent recovery to the Republic of Honduras to finance the contracting of consulting firms to prepare feasibility studies for the “National Program for the Establishment of Earth Dams in Honduras.”

$50M approved for the construction of  a new hospital:
In December 2019, the IADB approved a US$50 million loan for the construction of the new trauma hospital. The 22,000m²  project with a capacity of 150 beds is promising for the health sector, and the government plans to start the bidding process later this year.

El Salvador

According to sector forecasts, currently, there’s potential to start investments of around US$1,200 million for projects that would be completed by 2022 –this data corresponds to both public and private sectors, who expect the development of new projects for about US$600 million each.

Some of the projects that are underway include a natural gas generation plant (with an investment of more than US$1,000 million), a wind farm and photovoltaic park. The Government of El Salvador bets on logistics and infrastructure development in the eastern part of the country to maximize the connectivity of goods and services within Central America. Most of the projects below are in the feasibility study phase.

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$57M Modernisation and Expansion of El Salvador International Airport (Air Cargo Terminal).

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$63M Lighting and video surveillance in roads.

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$21M Remodelling of the parking building of the Ministry of Government.

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$120M New Government Centre (it will house 27 public institutions).

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$260M South perimeter corridor section of San Salvador.

·

$70M El Salvador Wastewater Treatment Plant.

Dominican Republic

$1B Pedernales Tourism Development:
The Dominican Republic’s public-private partnerships office (DGAPP) announced investments of US$1bn for the economic development of the Pedernales region and government authorities are aiming to kick off by mid-year. This project includes roads, electric and water services, a new airport and hotel facilities with 10,000 rooms.

$300M Rehabilitation of the Manzanillo Port:
The project aims to expand the operations and capacity of the Port of Manzanillo located in Montecristi, which will include a shipyard, free zones and other industrial facilities. The bidding process for the rehabilitation and expansion of the port will take place during the first semester of 2022 under the PPP scheme.

$300M Amber Highway:
The project consists of the construction of a highway to reduce the travel time between Puerto Plata and the rest of the country. The government approved and presented the project as a public-private partnership.