Mota-Engil wins contracts worth €1.65 billion in Mexico and Colombia
The most voluminous contract is a Public-Private Partnership (PPP) to build the Line 4 of the Guadalajara Metro in Mexico.
Mota-Engil has signed two contracts to build new metro lines in Latin America, specifically in Mexico and Colombia. The Portuguese construction company will earn €1.65 billion over the next few years with two deals, according to a statement released Wednesday to the Portuguese Securities and Exchange Commission (CMVM).
The most voluminous contract is a Public-Private Partnership (PPP) to build the Line 4 of the Guadalajara Metro in Mexico. Over 38 years, Mota-Engil will receive a total of €1.2 billion in payments. Initially, the project will serve 117,000 passengers per day between Guadalajara and Tlajomulco de Zúñiga in the southern part of the metropolitan area of this Mexican city.
“The Mexican railway PPP contract includes the design, construction, rolling stock and financing of the urban mass transit electric train system of Line 4 of the Metro of Guadalajara with an approximate length of 21 km and eight stations. After the construction period, the consortium will be exclusively responsible for the operation of the fare collection system. The availability payments are inflation linked and do not have any demand risk,” the statement said.
Mota-Engil will also receive €450 million to build a metro line for the western part of the city of Medllín, with 13 kilometres of extension, 17 stations and a capacity for 179,400 passengers per day. The company will also supply the locomotives for the “Metro de la 80”.
“The award of these two projects reflects Mota-Engil’s winning strategy to consolidate its presence as one of the main players in the railway sector in Latin America. With the award of these projects, Mota-Engil will develop three important urban mobility projects (including lines 4, 5 and 6 of the Monterrey light metro) in three of the 50 main cities in Latin America,” the construction company points out.
The company says that these contracts will help them “maintain its backlog at a record level, supporting the growth of turnover, which should exceed 30%, with the consequent consolidation of the group’s main financial indicators”.
