Sacyr Secures €516 Million Concession Extension in Chile

Sacyr has secured a new €516 million concession in Chile, referred to as the Itata Route, which includes improvements to existing roads and the construction of new infrastructure. This project extends Sacyr’s current operations in the region, which contribute significantly to its overall EBITDA. Additionally, Sacyr is preparing to consolidate mature projects for a planned minority stake sale within this financial year.

Sacyr recently announced a new concession in Chile, specifically the Itata Route, during a market session. This project entails an investment of €516 million dedicated to enhancing, constructing, maintaining, and operating various infrastructures. Included in the plan are improvements to the existing Routes 152 (75.1 km) and 158 (14.1 km), as well as the addition of a 6.9 km dual carriageway that will link Route 152 to Route 146, which Sacyr currently manages through the Valles del Biobí company, connecting Concepción and Cabrero. The new concession is set to last up to 45 years.

Sacyr’s acquisition of this concession further solidifies its presence in Chile, where it has considerable operations. Notably, this new concession is essentially an extension of ongoing projects and is a pivotal part of Sacyr’s growth strategy in the region. Chile accounts for approximately €225 million in EBITDA for 2024, equating to 20% of the EBITDA from Sacyr’s Concessions division, which also includes ventures in Italy. The Italian market represents Sacyr’s largest revenue source, followed by Colombia with an annual EBITDA exceeding €300 million.

To capitalize on its mature concession projects, Sacyr is consolidating these within the Voreantis vehicle. The Group anticipates selling a minority stake in this vehicle within the current financial year, indicating a strategic move to enhance its portfolio while maintaining operational integrity abroad.

In conclusion, Sacyr’s recent award of the Itata Route concession in Chile, with an investment of €516 million, reaffirms its strategic focus on expanding its infrastructure portfolio in key markets. This concession not only extends Sacyr’s existing operations in the region but also contributes significantly to the company’s overall EBITDA. Moreover, the planned sale of a minority stake in its mature projects underlines Sacyr’s proactive management approach in balancing growth and financial viability.

Original Source: thecorner.eu