ICA and CDPQ create new joint venture company

The project initially includes four Mexican tollroad and highway concessions, totaling 433 km of highways across the country.

The project initially includes four Mexican tollroad and highway concessions. (Photo: Archive/EL UNIVERSAL )
English 19/06/2015 18:58 Reuters Actualizada 18:58

Empresas ICA, S.A.B. de C.V., the largest infrastructure and construction company in Mexico, and CDPQ (Caisse de depot et placement du Quebec), one of Canada's leading institutional fund managers, announced today the completion of the transaction to create an operational platform that owns the concessions for four of ICA's operational toll roads and highways.

The operational platform, ICA Operadora de Vias Terrestres ("ICA OVT") is a newly formed joint venture company. ICA transferred its ownership interest in the concessionaires for the four projects to ICA OVT.  

ICA and CDPQ will operate the joint venture with a focus on participating in the operation and acquisition of highway and toll-road infrastructure assets in Mexico. ICA will continue to be responsible for the operation of the highways and for all maintenance requirements. The four highways and tollroads included in the initial transaction are, Mayab tollroad, Rioverde - Ciudad Valles highway, La Piedad Bypass and the Acapulco Tunnel.

Alonso Quintana, ICA's CEO, noted, "ICA is pleased to form this partnership with CDPQ, a world-class fund manager. This transaction enables ICA to monetize a significant portion of our investment in these mature assets, and redeploy the capital to reduce corporate debt and fund our investments in the next wave of infrastructure development that is occurring in Mexico. This transaction represents the first step in the creation of a platform that, by incorporating other similar assets as they mature, will allow us to continue to grow in a balanced manner, while at the same time systematically reducing our leverage and creating value for ICA shareholders."

"This partnership with Mexico's largest construction and infrastructure firm presents an opportunity to increase our exposure to a promising market at a time when major structural reforms are underway to step up infrastructure programs and stimulate the country's economic growth," said Macky Tall, Senior Vice-President, Private Equity and Infrastructure at CDPQ.

"By partnering with ICA, a true industry leader, we are doing more than simply investing in four Mexican highway projects. We are creating a long-term operational platform to foster our participation in major projects that have a direct impact on the economy, while generating attractive returns for our clients," added Mr. Tall.

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ICA CDPQ joint venture company highways