Solel Boneh International Ltd. has won a Guatemala government contract to rebuild and maintain the 330-kilometer Transversal del Norte, part of the Plan Pueblo Panama, a development corridor running from Puebla, Mexico, to Panama in a $672 million deal. Construction is due to take three years and maintenance work will continue for ten years. The Guatemala government will repay the investment over the 30-year franchise period.
Solel Boneh says that the cost of the project is $242 million, and the maintenance work is $43 million. The Guatemala government’s payments during the franchise period, including financing costs, are $672 million.
The Central American Bank for Economic Integration (BCIE) will finance 85% of the project’s cost, and Solel Boneh will finance the balance from equity and owners loans.
Solel Boneh International is a sub-subsidiary of Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN), held through Solel Boneh Building and Infrastructure Ltd.
Published by Globes [online], Israel business news - www.globes.co.il - on April 15, 2007
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