Abertis to invest US$250mn in Argentina

Spanish toll road operator Abertis signed an agreement with Argentina's national highway department that will allow the firm to extend its concession contract in the country until 2030.

According to a statement from the company, Abertis will invest US$250mn to the current road network, a plan that will be fully financed by future concession revenues.

However, Abertis said that the memorandum is only the first step in the process, and now the agreement must be undergo other legal and governmental approvals.

The company also added that closing the renegotiation will settle previous compensation claims with shareholders and authorities.

Currently, Abertis has a 48.6% stake in Grupo Concesionario del Oeste, which is in charge of the concession of the 56km western access to the city of Buenos Aires. The Grupo Concesionario del Oeste concession was originally set to expire in 2018.

The Spanish firm also has a 31.6% stake in concessionaire Autopistas del Sol, in charge of the 95km northern access road to Buenos Aires and the General Paz road, a 24km section free of toll that surrounds the Argentinian capital. The Autopistas del Sol contract will expire in 2020.

During 2016, Abertis registered 189mn euros (US$211mn) in revenue and 56mn euros in EBITDA through its operations in Argentina.