Parties get together in New York to conclude the financing of Aruba’s first road concession
Published on October 30, 2015
ORANJESTAD – The Green Corridor project is a PPP (Public-Private Partnership) between the Ministry of Spatial Development, Infrastructure and Integration of Aruba and Caribbean Infrastructure Company (CIC) N.V., a wholly-owned subsidiary of Grupo Odinsa S.A.
An agreement was established using the Dutch DBFM model to Design, Build, Finance and Maintain the roads located at Reina Beatrix Airport, Pos Chiquito, Savaneta and San Nicolas for a period of 18 years starting from completion of the construction. These works consist of a 7 km expansion of the current highways to 4-lane highways, 23 km road renewal, and a 13 km cycle path construction.
Aside from the project documents, AIB BANK N.V. acting as Mandated Lead Arranger (MLA), together with over 10 advisors including amongst others Deutsche Bank, Scotiabank, Mayer Brown, Allen & Overy and PricewaterhouseCoopers, was able to arrange senior debt in the amount requested by the parties involved.
The signing ceremony was held on July 15, 2015 at the headquarters of Allen & Overy and was organized in a professional manner. Financial close took place one week later on July 24, which concluded the contractual set-up of the Green Corridor project.
This achievement marks a great step forward as it is the first road concession for Aruba. Lessons learned from Green Corridor will add significant value to future infrastructure deals, including the Watty Vos Boulevard project that is currently scheduled to close in 2016.