Uruguay - Infrastructure ProjectsUruguay - Infrastructure Projects
Overview
In late 2011, Uruguay’s parliament approved a public-private partnership law that formalized the procedures, responsibilities, and obligations of State and private investors. Uruguay designed this law to attract foreign investment in much-needed infrastructure projects to improve the country’s economic competitiveness. The results so far have been hampered mainly due large delays in closing projects. Among those were the construction of low-cost housing projects and jails, construction and renovation of schools, road refurbishing, railway modernization, and deep-water port construction and operation. To date, the Ministry of the Interior has awarded a public-private partnership concession to build a new jail, and the Ministry of Transportation has issued two contracts for road rehabilitation. In May 2019, a Uruguayan/Spanish/French was awarded the rehabilitation of a 173-mile railway track.
Potable water resource management is an emerging issue. In 2013 and again in early 2015 isolated incidents of water resources tainted by microorganisms highlighted the need for urgent government investments in upgrading and monitoring water quality. The widespread appearance of cyanobacterias adversely affected Uruguay’s 2018/19 tourist season.
In May 2019, the government announced the modernization and rehabilitation of the Salto Grande Dam worth approximately $80 million. The U.S. Commercial Service will be updating its website with tender information as it becomes available.
For other infrastructure projects in the pipeline that U.S. exporters of goods and services should follow-up on, as well as for updates and more information, please contact Office.Montevideo@trade.gov.
Leading Sub-Sector
Of the seven-road public-private partnerships announced, only two were adjudicated so far (Route 21 and 24).
In November 2016, Uruguay announced it would invest $400 million dollars over five years in 150 public-private partnership infrastructure projects (mainly for the rehabilitation or construction of school buildings). Of those, $244 million are in the process of being financially structured and/or tendered.
The governments of Uruguay, Argentina, Brazil, Paraguay, and Bolivia are working together on one of the largest Latin-American "regional integration" projects: the joint use of the 2,500-mile long Paraná-Paraguay-Uruguay river system for the transportation of goods from these five countries to the Atlantic Ocean. The ongoing project calls for investment in civil construction, dredging and maintenance, ports (including equipment), and shipping. Further opportunities for U.S. involvement exist in the development of waterway administration. While the fate of the waterway remains uncertain due to environmental concerns, intensive work is being done in dredging and rock removal. The Paraguay-Paraná Hidrovía Executive Committee (est. 1989) which had ceased operations from 2012 to 2016 began work again in 2017.
Web Resources
Embassy Contacts: Office.Montevideo@trade.gov; http://www.export.gov/Uruguay
Ministry of Transportation and Public Works (MTOP) - http://www.mtop.gub.uy
National Ports Administration (ANP) - http://www.anp.com.uy
National Railway Administration (AFE) - http://www.afe.com.uy Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
In late 2011, Uruguay’s parliament approved a public-private partnership law that formalized the procedures, responsibilities, and obligations of State and private investors. Uruguay designed this law to attract foreign investment in much-needed infrastructure projects to improve the country’s economic competitiveness. The results so far have been hampered mainly due large delays in closing projects. Among those were the construction of low-cost housing projects and jails, construction and renovation of schools, road refurbishing, railway modernization, and deep-water port construction and operation. To date, the Ministry of the Interior has awarded a public-private partnership concession to build a new jail, and the Ministry of Transportation has issued two contracts for road rehabilitation. In May 2019, a Uruguayan/Spanish/French was awarded the rehabilitation of a 173-mile railway track.
Potable water resource management is an emerging issue. In 2013 and again in early 2015 isolated incidents of water resources tainted by microorganisms highlighted the need for urgent government investments in upgrading and monitoring water quality. The widespread appearance of cyanobacterias adversely affected Uruguay’s 2018/19 tourist season.
In May 2019, the government announced the modernization and rehabilitation of the Salto Grande Dam worth approximately $80 million. The U.S. Commercial Service will be updating its website with tender information as it becomes available.
For other infrastructure projects in the pipeline that U.S. exporters of goods and services should follow-up on, as well as for updates and more information, please contact Office.Montevideo@trade.gov.
Leading Sub-Sector
Railways:
The Finnish paper mill UPM confirmed the construction of its second plant in Uruguay. Total project investments is $5 billion, of which $1 billion is designated as a government investment in railway and road improvements. The railway portion of the project includes the complete overhaul of a 173-mile stretch of track, including new accesses to the Port of Montevideo. In May 2019, Uruguay awarded the project to a Uruguayan/Spanish/French consortium.Roads:
The number of kilometers of roads in Uruguay is adequate for its size, but the quality is not adequate. The government is focusing on improving road quality (through public-private partnerships mainly). In 2017, the government invested $480 million to refurbish roads.Of the seven-road public-private partnerships announced, only two were adjudicated so far (Route 21 and 24).
Education:
In November 2016, Uruguay announced it would invest $400 million dollars over five years in 150 public-private partnership infrastructure projects (mainly for the rehabilitation or construction of school buildings). Of those, $244 million are in the process of being financially structured and/or tendered.
Paraná-Paraguay River Transportation System:
The governments of Uruguay, Argentina, Brazil, Paraguay, and Bolivia are working together on one of the largest Latin-American "regional integration" projects: the joint use of the 2,500-mile long Paraná-Paraguay-Uruguay river system for the transportation of goods from these five countries to the Atlantic Ocean. The ongoing project calls for investment in civil construction, dredging and maintenance, ports (including equipment), and shipping. Further opportunities for U.S. involvement exist in the development of waterway administration. While the fate of the waterway remains uncertain due to environmental concerns, intensive work is being done in dredging and rock removal. The Paraguay-Paraná Hidrovía Executive Committee (est. 1989) which had ceased operations from 2012 to 2016 began work again in 2017.
Ports
Uruguay’s ports are generally well qualified. Main projects in the Port of Montevideo will be the enlarging of docks C + D (worth $90 million), the building of a dredge, the Port of Capurro (fishing-fleet hub worth $120 million), and the port viaduct (worth $130 million) to separate commercial traffic from port traffic. The Buquebus passenger terminal, catering to river transportation between Montevideo in Uruguay and Buenos Aires in Argentina, will be relocated out of the port premises and rebuilt elsewhere.Dams:
In May 2019, Uruguay announced its plan to modernize and renovate the Salto Grande Dam between Uruguay and Argentina. The project will be developed during the next 30 years in three stages. The first stage, 2019-2023, is valued at $80 million and has already received Inter-American Development Bank financing.Web Resources
Embassy Contacts: Office.Montevideo@trade.gov; http://www.export.gov/Uruguay
Ministry of Transportation and Public Works (MTOP) - http://www.mtop.gub.uy
National Ports Administration (ANP) - http://www.anp.com.uy
National Railway Administration (AFE) - http://www.afe.com.uy Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.