Uruguay is soon to start work on its first public-private partnership (PPP) highway project, which comprises the construction, renovation and management of the 179km stretch between Nueva Palmira and Mercedes.

Estimated to cost more than $160m, Uruguay’s Ministry of Transport and Public Works awarded the project construction contract to a consortium consisting of Sacyr Concesiones, Sacyr Construcción and Grinor.

"The project was an excellent initiative and one, moreover, that opens a new market for the company in the region."

The project involves works to be carried out on route number 21 from Nueva Palmira to route number 2, and from route number 24.

The consortium will undertake construction work of 8.5km Nueva Palmira 8 bypass and restore 121.75km of single, two-lane highway, reported Worldhighways.com.

The two stretches covering 179.1km will be maintained under the initial 24-year term concession.

SacyrConcesiones CEO Rafael Gómez del Rio was quoted by Worldhighways.com as saying: "The project was an excellent initiative and one, moreover, that opens a new market for the company in the region."

In the consortium, Grinor holds a 49% stake, Sacyr Concesiones has a 43% interest, and SacyrConstrucción has an 8% equity.

Uruguay’s Ministry for the Economy and Finance considers the project to be a significant milestone and gives a new direction to the growth and development of public works in the country.