Dealert› Deals› Circuito Vial 3 (CV3)

abrdn and Bestinver → Circuito Vial 3 (CV3)

Buyout Uruguay Highways & Rail Tracks (NEC) Corporate / Strategic Seller
Deal summary

Target Information

Circuito Vial 3 (CV3) is a vital infrastructure project in Uruguay, spanning approximately 300 kilometers and serving as a critical transportation link between Brazil and Argentina. The project was structured as a Public-Private Partnership (PPP) by Uruguay's Ministry of Transport and Public Works (MTOP) and was awarded to Copasa and Espina Obras Hidráulicas in 2019, with a contractual term extending over 20 years. This strategic roadway enhances connectivity in the region and facilitates trade and transportation.

The acquisition of CV3 represents a significant move in the infrastructure sector, poised to strengthen the economic ties between Uruguay and its neighboring countries. The deal marks the completion of the infrastructure project just after its finishing, positioning the new owners to leverage the asset's operational capabilities immediately.

Industry Overview in Uruguay

The Uruguayan infrastructure sector has been rapidly evolving, characterized by an increasing trend toward Public-Private Partnerships (PPPs). The government has actively sought private investment to enhance the quality and sustainability of infrastructure, with several projects making headway in recent years. These efforts have been facilitated by a stable political climate and a clear legal framework that supports private investment.

Moreover, Uruguay's strategic location and commitment to infrastructure development have attracted foreign investments aimed at enhancing connectivity and stimulating economic growth. The PPP model has proven effective in delivering critical infrastructure while allowing private entities to assume risks associated with project development and financing.

As a result, Uruguayan infrastructure is experiencing a renaissance, with several landmark projects currently under development. These include port expansions, road upgrades, and energy projects, which not only promise long-term returns but also contribute to national growth ambitions.

The government continues to signal its readiness to engage in further infrastructure investments and partnerships, indi…

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