This is the most important public infrastructure project developed in Uruguay under the PPP (public-private partnership) modality, with an approximate investment of US$ 1,502 million.
A consortium in which Sacyr participates has initiated an arbitration against the Ministry of Transport and Public Works (MTOP) of Uruguay after not having received the agreed payments since November 2023 for the Central Railway project, the consortium reported in a statement.
This is the most important public infrastructure project developed in Uruguay under the PPP (public-private partnership) modality, with an approximate investment of 1,431 million euros (US$ 1,502 million), whose financing was structured and carried out by the project's shareholders.
Sacyr is accompanied by Uruguayan companies Saceem and Berkes, which control 33% of the concession, as well as the French company NGE, with another 27%, while the Spanish company leads the capital with 40%.
According to local press, the debt currently accumulated by the State to the consortium amounts to US$ 160 million, after this railway line, which allows the transport of merchandise from Paso de los Toros to the port of Montevideo, came into operation in November 2023.
"The project has faced multiple challenges, including delays in expropriations, the Covid-19 pandemic, cost increases due to the Russia-Ukraine war, the March 2024 floods and cases of vandalism that threaten the railway's communication system and security," the consortium said in its statement.
During 2024, the companies worked with the authorities to reach agreements of understanding, which were reflected in different documents such as the memorandum of understanding signed on August 12, 2024, the agreement reached in mediation on December 16, 2024, and the third modification of the contract signed on January 23, 2025.
However, the consortium claims that the administration has not fulfilled its obligations and has not received payments from the State for services provided since December 24, 2023, which has put the project "in a critical financial situation."
"Grupo Vía Central reiterates its commitment to the project and the country, having fulfilled its obligations and assumed additional services to guarantee the success of the Central Railway. The company hopes that this measure will encourage compliance with the agreements by the Administration, thus guaranteeing the continued success of the Central Railway for the benefit of all Uruguayans," it concludes.
