P3 Aruba | Private Public Partnership

Welcome to the PPP Green Corridor project section of our web site. The PPP Watty Vos Boulevard project section is available here.

PPP Aruba Green Corridor

The Government of Aruba would like to thank you for your interest in the PPP Green Corridor project. This is the first PPP transport infrastructure project for Aruba, which has been procured through a competitive process concluded in 2013. The PPP contract has been awarded to Grupo Odinsa S.A.

This website is set-up to inform interested local and international parties in more detail about the Green Corridor project e.g. general contractors, engineering and architectural firms, infrastructure investors, lenders, financial and legal and technical advisors, consultants, and insurance companies.

The Government of Aruba deems it to be of importance that local private parties and stakeholders obtain thorough knowledge of the Aruban PPP structure and process. Therefore the government expects that the information brought forward through the Industry Days, this website and recent information sessions will accommodate the formation of balanced and sustainable partnerships between local and international firms that will compete for this and future PPP projects.

Grupo Odinsa S.A. has been contracted to deliver the PPP contract

Following a procurement procedure the Government of Aruba has contracted Grupo Odinsa S.A. to deliver the PPP Green Corridor project.

Overview of the tender procedure

Candidates have submitted requests to participate mid November 2011. The Contracting Authority shortlisted to three bidders to participate in the dialogue phase of the tender procedure.

(the names of the bidders have been arranged in alphabetical order:)

  • Grupo Odinsa S.A. [Colombia] (*)
  • MJM Aruba (MNO Vervat BV [Aruba], Janssen de Jong Caribbean BV [Curacao], Macquarie Capital Group Ltd [Australia])
  • Vergas Aruba (Vergel Y Castellanos S.A. [Colombia]) (*)

The Contracting Authority entered the dialogue phase with the three selected bidders. Two out of three (*) went through a series of competitive dialogue meetings with the Contracting Authority.

In March 2013 the bidders delivered their final parts of the bids. Grupo Odinsa S.A. has been announced preferred bidder April 15, 2013.

Please note the original timetable of the tender procedure was delayed for over a year and a half due to multiple court challenges. The procedure experienced an initial hold-up when a fourth Candidate challenged the decision to disqualify it since the Contracting Authority pre-defined a shortlist of just three bidders. Following re-evaluation the Contracting Authority entered the dialogue phase with the three bidders selected. More recent court cases were about a bidder which was excluded from the bidding by the Contracting Authority for submitting its bid a few minutes late in September 2012. On appeal this bidder secured the right to re-submit its bid. In line with procurement rules the preferred bidder appointment has been subject to a fiftheen-day mandatory standstill period ending 2nd of May 2013. The preferred bidder appointment has been challenged too. The decision regarding the final appeal has been received mid October 2013.

The Minister of Integration, Infrastructure and Environment and Grupo Odinsa S.A. signed a pre works agreement in Q4 2013. Following a financing raising phase Grupo Odinsa S.A. and the Minister of Spatial Development, Infrastructure and Integration of the Country of Aruba signed the PPP agreement in July 2015. The project achieved financial close, which enabled funds to start flowing from the funders so that project implementation and delivery could actually start. Financial close occured where all the project and financing agreements were signed and all the required conditions contained in them were met.

Financing raising phase

Following preferred bidder announcement, the preferred bidder has entered a financing raising phase, under the oversight of the Contracting Authority. The objective of this phase was to identify the best value long term financing terms available for the Green Corridor project in the funding market.

Brief description of the project

The Project “Green Corridor” is comprised of all public projects, supplies and services arising from the Design, Build, Finance & Maintain Agreement concluded following this tender procedure that need to be carried out or provided within the scope of the Green Corridor project. The Project encompasses the design, construction, financing and maintenance of the “Green Corridor” route.

The tender notice was published in the Landscourant of Aruba September 9, 2011.

Scope of the contract

In essence, the project relates to the expansion of the capacity of the existing main road from the Reina Beatrix Airport to the roundabout of Pos Chiquito from a single carriageway (1x2) to a dual carriageway (2x2) over a distance of approximately 8 kilometers (km). Within this context the existing lanes of the main road from Jaraweg to San Nicolas and the existing roads in northern route and southern route will be reconstructed. The northern route passes along Jara, Savaneta, Sero Alejandro, Rooi Koochi, Mabon, Weg Sero Blanco and Weg Fontein to San Nicolas. The majority of the southern route is along the coast: the route runs from Isla di Oro and passes along Savaneta, Noord Cura Cabay and Zeewijk to San Nicolas. In total, this relates to an expansion of the existing roads over a length of approximately 5 km and the renovation of the existing roads over a length of approximately 23 km. Construction period of the above is estimated no more than 2½ years. The Contractor is also to perform maintenance duties on Green Corridor route during the period from the Commencement Date until 18 years after the completion of the construction project.

The payments to the Contractor are conditional on the delivery and proven availability of the infrastructure to the Contracting Authority. This creates a difference in the timing between income and expenditure for the Contractor and, consequently, the need for financing. The Contractor must arrange for the necessary project financing within this context. The availability-based contract mirrors those used for international PPPs.

Presentation materials

The Green Corridor industry day was held on May 27, 2011. Furthermore the Contracting Authority organized three information meetings for interested Candidates. Candidates had the opportunity to request for clarifications. The third meeting was held October 18, 2011.

Please find our presentations in the documents section of this website.