Guatemala’s 1st PPP heading towards Q3 construction start

The public-private partnership project to expand the Escuintla-Quetzal port highway will see construction start in Q3, according to the concession holder.

The project is the country’s first PPP ever and construction works were originally set to start at the end of last year. 

Works will begin in August or September when the definitive engineering study has been approved, local news outlet Prensa Libre reported Armando Salas, deputy director of operations and maintenance at Marhnos Guatemala, as saying. Marhnos and Guatemala's Precon Group hold the US$125mn concession contract through their Convía consortium. 

In an interview with BNamericas in March, Convía president Sandro Testelli denied reports that the project had suffered delays. 

“It hasn’t been postponed," Testelli said. "We're in a process where the proposal for the execution of the works has been delivered. The works should start in May, according to the dates in the contract.”

PPP promotion agency Anadie, which carries out controls (pictured) to ensure contractors are in line with schedule, has not commented on the situation. 

Election impact?

Guatemala will hold general elections on June 25 and some analysts say it could have an impact on certain infrastructure projects. 

“There are some who play in the political arena and are trying to attract votes by opposing projects,” Marvin Flores, an analyst at local transparency-focused NGO Acción Ciudadana, told BNamericas.

Regarding the PPP, Testelli said the elections would not derail the project as it has been approved both by congress and by presidential decree. 

The concession 

The 25-year concession was awarded in July 2018 but the project was only approved by congress in November 2021. 

Along with repairs and installation of toll booths, Convía’s contract includes operation and maintenance of the 43km stretch that connects the municipalities of Escuintla, Masagua, Iztapa and San José.