Autopista Vespucio Norte, Chile
– Key arteries in Santiago's urban roadway network
Interest: 25%
Description
Portfolio of urban toll road concessions which constitute key toll roads in Santiago’s urban roadway network connecting the east of Santiago with the international airport, the Port of Valparaiso and the North of Chile.
Regulatory Environment
Chile’s stable concession program has an over 20-year track record. The tolling regime provides above inflation tariff increases (CPI + 3.5%), with additional upside in the form of congestion adjustments.
Secure Cash Flows
Expected to generate secure cash flows as a result of strategic locations and favourable economic trends. In addition, these toll roads are expected to generate increasing cash flow through volume growth and toll increases.
Strong Customer Base
• Customer base is comprised of a high percentage of frequent users
Long-Life Strategic Assets
• Long-term concessions through 2033 to 2037
• New toll roads built between 2006 and 2008
Growth Opportunities
• Growing cash flows are expected to be driven by:
• Above inflation tariff increases (CPI + 3.5%)
• Congestion tariffs which allow for increased tolls
• Significant excess road capacity which allows for future growth
• Continued economic growth in Chile should drive an increase of the motorization rate