Puerto Rico officials Monday announced the government will receive an up-front payment of $1.08 billion from Goldman Sachs Global Infrastructure Partners II LP and Abertis Infraestructuras, based in Spain. The commonwealth will retain ownership of Route 22, a toll road that runs for 52 miles through the north side of the island, and Route 5, a four-mile toll road that connects to Route 22 and runs south of San Juan.
At least 90% of the up-front payment will be used to pay down outstanding Puerto Rico Highways and Transportation Authority debt, said David Alvarez, executive director of the Puerto Rico Public-Private Partnership Authority. The highways authority has roughly $7 billion of outstanding bonds.
Under the long-term concession agreement, Goldman and Abertis during the next three years will spend $56 million for roadway safety improvements. The consortium must also invest another $300 million over 40 years for additional infrastructure needs on Route 22 and Route 5.