Five key projects would improve the country’s road connectivity and attract foreign investment

Home Business Five key projects would improve the country’s road connectivity and attract foreign investment
Five key projects would improve the country’s road connectivity and attract foreign investment

The comments were given in the second preparative conversation of ENADE 2025 that will be carried out by the Foundation for the Development of Guatemala (Fundesa), in which it seeks to generate commitment to boost infrastructure as an enabling to attract foreign direct investment (FDI) in logistics in Guatemala.

Juan Esteban Sánchez, director of Invest Guatemala, mentioned in this presentation that there is road infrastructure to attend on the different main roads such as the North and South CA-9, CA-1, CA-2 Oriente and CA-2 West, through which it travels loads for about US $ 13 thousand 279 million for export and US $ 25 thousand 749 million imports.

In his exhibition, Sánchez explained that by 2025 it is projected that foreign direct investment will grow around 10% and will be at US $ 1,850 million.

However, it was mentioned that, given the current conditions, it is necessary to implement ideas such as the structuring and implementation of key projects under public-private alliance schemes (app), regulations to create investment funds or consortiums to develop strategic works, alliances with multilateral organizations, work tables with the government, among others.

Juan Carlos Zapata, Executive Director of Fundesa, said that among the five main infrastructure projects are the North and South CA-09, the CA-02 West and East, the C-50 Regional Ring, the Guatemala City Metro, and complementary projects such as the so-called Cito 180, the Santa Cruz-Cobán section and the rehabilitation of the PET-12 departmental route of the PET-12 departmental route of the Betel border post.

The manager indicated that, to meet the current challenge of infrastructure and budgetary execution, it must work in article 95 of the Road Infrastructure Law, which grants tools to the Ministry of Communications to advance several hiring of projects while establishing the Fund of the DIPP. In addition, the reforms to the Public-Private Alliances Law in Congress must continue, as well as approve the laws related to ports and airports.

Projects in the Ministry of Communications

Gustavo Cancinos, Project Planning and Management Advisor of the Vice Ministry of Infrastructure, of the Ministry of Communications, agreed that it must be worked together and that the key to success is to move together between the public and private sector. He commented that developed countries “discovered that only the government will not go anywhere and that it is best to ally with you, that they are the engine of any economy.”

The official mentioned that they have two important projects called logical corridors, which will be developed under the Priority Road Infrastructure Law, focusing on the C-50 regional ring. For this one already has a 55% progress in one of the sections, identified as section eight, which consists of connecting the East CA-2, that is, the road that goes from Escuintla to Pedro de Alvarado. It is expected that it ends in 2026 and will connect Guanagazapa with the work.

The injection of funds is also being managed to solve the needs and problems that affect the road sections, such as the right of road and the constant cash flow for the contractors, aspects that it considers key, “because the possession of the earth has caused delays or, in extraordinary cases, the unfeasibility of the project”.

Cancinos indicated that sections already hired will be reactivated, such as section one of the North CA-9 towards Jalapa by National Route 19; Section seven, continuation of Guanagazapa-El Obraje; and section six, phases one and two, which connect with the jocotillo. This would allow considerably decongesting the South CA-9 (Palín-Escuintla highway), by connecting Pedro de Alvarado with Valle Nuevo and San Cristóbal.

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Regarding the Escuintla -Puerto Quetzal highway, the first low APP project, is already underway by the company. Cancinos said that they have high expectations that this project be an exemplary model and that they hope to replicate it with support from the private sector, “because otherwise, we have seen that we cannot advance.”

A bottleneck was also mentioned on the Palín-Secuintla highway. Through Anadie, the CIV resumed the idea of ​​a road with maintenance, rehabilitation and operation, due to the logistics arrears it generates.

The official explained that if it is possible to finish the port connection to Puerto, the highway could be taken to Pedro de Alvarado without entering the city or bottling on the Palín-Secuintla road. The works have an estimated term of three to four years.

Section tender The Rancho-Teculután

Recently the tender of the section from El Rancho to Teculután was launched, and subsequently work in the section of Teculután to Mayuelas. CANCINOS expects that in 2025 the hiring of the first section ends, with the participation of international companies. The project has IDB support through a loan of US $ 175 million (about Q1 thousand 353 million), approved in 2024.

In the section the Rancho-Tulután contemplates an important release in the El Rancho village, similar to that of Bárcena in Villa Nueva. This intervention is expected to drive the local economy, replicating what was achieved in the south of the city. Then, the release will continue in Teculután and Río Hondo, and a road distributor in Mayuelas, to connect to Puerto Barrios.

Infographic shows the priority road infrastructure that needs attention for attraction of foreign direct investment presented in the preparatory conversation of ENADE 2025. (Photo, free press: infographic).

Bacheo or rehabilitation?

They are currently hiring maintenance and bumps; However, the Civ detected that several roads have already fulfilled their useful life and do not resist more bumps, so they will focus on rehabilitation.

Cancinos explained that the Vice Ministry of Infrastructure works with three entities: the Social Fund, which executes municipal projects; Covial, in charge of preventive maintenance; and roads, which executes rehabilitation, improvement and construction. He said there are sections whose structure is fully damaged and require complete tread folder, base and subbase.

National and departmental routes are being prioritized, and the creation of new runners is promoted, currently in the pre -investment and economic feasibility profile stage.

Via rights problems

On this issue, Cancinos said that one of the recurring problems in the projects is the lack of prior process of the right of way. He pointed out that the engineering study should include this process from the beginning, but many times, due to the rush, it is built without having acquired the land in the name of the State, which causes delays or unfeasibility.

Private sector demand action

Charles Bland, president of Cacif, agreed on the need to invest in infrastructure. He pointed out that investors seek legal certainty and adequate infrastructure. He expressed concern about the low execution of the budget, although there are currently available resources, which would be a lost opportunity to recover and expand the country’s road network.

ENADE CONCLUSIONS

Juan Monge, president of the ENADE Organizing Committee, concluded that the modernization of ports, airports, roads and special economic zones, together with a solid legal framework and investor service services, can position Guatemala as a competitive destination for global trade and the Nearshoring.

Andrés Saldías, Director of Investment Attraction of Partnership for Central America (PCA)he mentioned that one of the three key elements for investors are costs, which can be increased due to infrastructure deficiencies.

María Teresa González, president of the National Transport Coordinator; Ruby González, expert in Deloitte infrastructure; and Alejandro Guillén, Spectrum industrial business manager, in addition to deputies, businessmen and other officials.

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