International bidding process for Public Private Partnership for lighting and video surveillance on selected road sections begins

International bidding process for Public Private Partnership for lighting and video surveillance on selected road sections begins

With the aim of contributing to road safety and citizen safety, FOMILENIO II and the Ministry of Public Works announced an international tender for a Private Public Partnership (PPP) for lighting and video surveillance (IVV). This project will be carried out on 143 kilometers of selected road sections in the departments of La Paz, La Libertad and San Salvador. Minister of Public Works and Transport Romeo Rodríguez Herrera, Minister of Foreign Affairs Alexandra Hill Tinoco, Acting Deputy Chief of Mission of the United States Embassy Brendan O’Brien, MCC Country Director Martha Keays, and Fomilenio II Executive Director William Pleites participated in the announcement.

Companies interested in implementing the project will have four months to submit their technical and financial proposals. After an evaluation process, the contract of the winning company must be approved by the Legislative Assembly.

The PPP will last 15 years and will have an investment amount of $13 million. The four road segments are: Santa Tecla – La Libertad with 23 km.; La Gloria – El Espino with 52 km.; El Espino – El Salvador San Óscar Arnulfo Romero and Galdámez International Airport, with 43 km and Plaza de los Cocos Zacatecoluca with 25 km. It is estimated that on average more than 23,750 vehicles travel these stretches every day.

The private partner undertakes the financing, design, construction/installation and maintenance of infrastructure and services, including lighting, video surveillance cameras, underground wiring, monitoring rooms, and the operation of the lighting system, in exchange for the advertising rights adjacent to the road.

A PPP is a contract between a public and a private entity, where the private party assumes substantial financial, technical and operational risks, in the design, financing, construction and/or operation of a public good or service for a limited period of time, in exchange for compensation and directing state resources to social priorities.

FOMILENIO II provides technical and financial support to promote PPPs in El Salvador as a mechanism to attract investment and optimize the contribution of road assets (roads) to investment, employment and the growth of the Salvadoran economy.

FOMILENIO II is a program that is funded with US$277 million invested by the United States government, through the Millennium Challenge Corporation (MCC), plus a counterpart of US$88.2 million contributed by the government of El Salvador, making a total of US$365.2 million, which will be invested within five years (from 9 September 2015 to 8 September 2020). To date, FOMILENIO II has invested $3.8 million in technical studies, training, and strengthening of different government institutions. MCC provides time-limited grants that promote economic growth, poverty reduction and institution-building. These investments not only support stability and prosperity in partner countries, but also improve American interests.