PROJECT HIGHLIGHTS

•TheCityofBuenosAires’largestconstructionworkinover35years.

•Thefirst“cut-and-cover”tunneldesigninArgentina.

•ThefirstArgentinianhighwayoperatedbya“barrier-free”or“freeflow”tollsystem.

•Potentialengineeringandconstructionchallengesalleviatedbythedivisionoftheconstructionworksintothreeseparate(butsimultaneous)constructioncontracts.

•Specificlaw(Law5796,see‘LegislativeEnvironment’section)passedtoauthorisethesaleofpre-determinedplotsofpublicland,withtheproceedstogotowardsfinancingtheproject.

Paseo del Bajo Road Corridor Project

SHOWCASE PROJECTS

Image courtesy of AUSA

1 Managed lanes are defined as “highway facilities or a set of lanes where operational strategies are proactively implemented and managed in response to changing conditions”. Lane management strategies include pricing, vehicle eligibility and access control. (See U.S. Department of Transportation Federal Highway Administration, “Managed Lanes: A Primer”, available at https://ops.fhwa.dot.gov/publications/managelanes_primer/)

BUENOS AIRES, ARGENTINA

May 2018

PROJECT OVERVIEW

The USD 700 million Paseo del Bajo project is a transformative road corridor project being developed by the City of Buenos Aires (CABA) in Argentina to ease traffic and improve connectivity between the North and South areas of the city.

ItwillbeCABA’slargestconstructionworkinover35yearsandispartoftheCABAgovernment’sPublicWorksPlanfor2016-2019,inlinewithArgentina’ssubstantialnationalinfrastructureinvestmentprogram.Thecorridorwillconsistofaninnovative“trench”(alsoknownasa“cut-and-cover”)tunneldesign,thefirstofitskindinArgentina,aswellasmanagedlanes1andnewpublicgreenspaces.

Thehighwaycorridorwillbe7.1kmlongandwillconnecttheIlliaHighwaywithtwoofthecity’sbusiestroadways,the25deMayoandBuenosAires-LaPlataHighways.Morethan25,000privatecarsandheavyvehiclescrossthecitycentreeverydaywithoutthisbeingtheirfinaldestination,generatingcongestion,longertraveltimesandhigherlevelsofenvironmentalandnoisepollution.Thecorridorwillallowtraffictoberedistributedawayfromcrowdedcityareas,particularlyhelpingtoalleviateheavytrafficontheMadero-HuergoandMoreaudeJustoAvenues,aswellasprovidemoredirectaccesstothePortofBuenosAires(Port)andtheRetiroBusTerminal.

TheregulatorforthepublicprojectistheMinistryofUrbanDevelopmentandTransportwithintheCABAgovernment,whilststate-ownedconcessionaireAutopistasUrbanasS.A.(AUSA)istheprojectmanager,andresponsibleforoperationsandmaintenance.Theprojectwillbepartoftheoverallurbanhighwaysystem,sotheconcessionperiodwillbethesameasAUSA’sgeneralconcessionforthesystem,whichendsin2029.

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Theconstructionoftheprojecthasbeendividedintothreeseparatecontracts,eachcontractedtodifferentconsortiumsbuttobecompletedsimultaneously,withtotalconstructionexpectedtotakeupto28months.ConstructionbeganinJanuary2017andisexpectedtobecompletedinApril2019.

PartoftheprojectwillbefinancedthroughthesaleofunusedareasinBuenosAires,particularlypublicplotsoflandclosetotheRetiroTerminalandPuertoMadero.UnderLaw5796,promulgatedonMarch292017specificallyforthisproject,theCABAgovernmentwillsellpre-determinedplotsoflandtore-investinthePaseodelBajoprojectasagrant,toreducedependenceonthepublicbudget.TheremainderoftheprojectwillbefinancedwithaloanfromtheDevelopmentBankofLatinAmerica(CAF),endorsedbytheFederalArgentiniangovernment.ItwillbefundedbytheCABAgovernment’sHighwayTollCollectionsystem,withthePaseodelBajoprojectbeingthefirstArgentinianhighwayoperatedbya“barrier-free”or“freeflow”tollsystem.

EXPECTED PROJECT BENEFITS

ThePaseodelBajoprojecthasbeendeclaredasoneofthemostimportantroadworksprojectsconductedinthecityofBuenosAiresfordecades,anditisexpectedtocreatenumerouseconomic,socialandenvironmentalbenefitsfortheresidentsofBuenosAires.AUSAhasconductedextensiveengagementwiththevariousstakeholderstotheproject,includingtheMinistryofUrbanDevelopmentandTransport,theStatePropertyAdministrationAgency(AABE),thePortsAdministrationAgency(AGP)andtheSecretaryofTransportation,aswellasresidents,workersandbusinessownersinthelocalcommunitiesthroughwhichtheprojectwillpass.AUSAestablishedaspecificstakeholderengagementteamforthispurpose,RelacionesconlaComunidad,whichhasconductedhundredsofcommunityconsultations.

The expected benefits of the project are highlighted below:

•ImprovedNorth-Southconnectivity,creatingaunifiedBuenosAires.Itisexpectedthattheprojectwilldirectlybenefitapproximately350,000people(passengersandpedestrians)everyday.

•Reducedtrafficcongestionacrossthecity,resultinginsignificanttraveltimesavingsformorethan25,000vehiclesaday,includingalmost10,000trucks.Truckswilltakeanexpected10minutestocompleteacross-cityjourney,whichcurrentlytakes45to60minutes.

•Reducednoiseandairpollution,duetothefactthatheavyvehicleswillbebelowground(see‘ProjectDesign’section).Lighttransitvehicleswillalsobenefitfromshortervehiclestoppingtimesandthemaintenanceofaconstantspeed,furthercontributingtoreducedpollution.

•Enhancedvehicularandpedestriansafety,throughthereconfigurationoftrafficandseparationofvehicletypes,aswellassaferpedestriancrossings.

•60,000m²ofnewpublicspaces,35,000m²ofwhichwillbegreenareasfromwhichthepubliccanbenefit,includingcyclepathstoencouragerecreationandsustainablemobility.Thiswillcontributesignificantlytothecity’scommitmentofreaching250kmofbikelanesand400EcoBici2stationsby2019.

•Integrationwiththetransportsystemofthemetropolitanregion,increasingregionalcompetitiveness.

•ReductionoflogisticscostsassociatedwithforeigntradeduetomoreefficientaccesstothePortofBuenosAires.

2 EcoBici is a free-to-use bicycle-sharing system in Buenos Aires.

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CONTRACTUAL STRUCTURE

AsnotedintheProjectOverview,theconstructionofthePaseodelBajoprojecthasbeendividedintothreepackagesor“Blocks”,eachcontractedtoadifferentconstructionconsortium.

Regulator: MinistryofUrbanDevelopmentandTransport

Project Manager:AUSA

Operations and Maintenance:AUSA

Maintenance of Public Spaces: PuertoMaderoCorporation

BLOCK A BLOCK B BLOCK C

Construction:JCRS.A.andCoarcoS.A.(JV)

Construction Supervision:ConsulbairesIng.ConsultS.A.andConsultOGrimauxyAsoc.S.A.Técnica

Construction: GreenS.A.andConstrucciónElectromecánicasdelOesteS.A.(CEOSA)(JV)

Construction Supervision:IngenieríayEconomíadelTransporteS.A.

Construction: IECSAandFontanaNicastro(JV)

Construction Supervision:EuroestudiosSL

PROJECT TIMELINE

Key dates in the project timeline are shown below:

April 2016CABAgovernmentannouncedtheprojectandtheDataRoomwasopenedforpotentialbidderstoviewtechnicaldocuments.

May 2016Tenderopenedandpublishedinnewspapers.

July 2016 CAFapprovesUSD400millionloanfortheproject.

September 2016 DataRoomdeactivatedandbiddingprocesslaunched.

December 2016 Biddingprocessendsandthethreeseparateconstructioncontractsareawarded.

January 2017 CAFloancontractissignedbytheGovernmentoftheRepublicofArgentina.

January 2017 Constructionfortheprojectbegins.

March 2017 Law5796ispromulgated,definingwhichpublicareaswillbesoldtofinancetheproject.

October 2017 ThefirstplotsoflanddeterminedbyCABAtobesoldareauctioned,withtheproceedstogotowardstheproject.

December 2017 Twofurtherplotsoflandaresoldtofinancetheproject.

April 2018 Onemoreplotoflandisauctioned.

April 2019 Expectedcompletionofconstruction.

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LEGISLATIVE ENVIRONMENT

OnMarch292017,Law5796oftheAutonomousCityofBuenosAires(CABA)waspassed3.ThislegislationauthorisedtheStatePropertyAdministrationAgency(AABE),inagreementwiththeMinistryofTransportationofArgentinaandtheCABAgovernment,todefineexactlywhichpublicareasorplotsoflandwouldbesoldtofinancethePaseodelBajoproject.ThelawalsostipulatesthattheCABAgovernmentandtheArgentinianNationalGovernmentmustguaranteetheurbanintegrationoftheprojectwiththecity.

Underthislaw,CABAapprovestheregistrationofpropertiesasprivatedomainsoftheArgentinianNationalGovernment,aswellastheirrezoning.AABEgrantsthepropertytitlesandtheircorrespondingregistrationforauctiononbehalfoftheArgentinianNationalGovernment.

3 Annex VIII of Law 5796 is specifically relevant to the Paseo del Bajo project.

Followingthis,AABEisrequiredtoconductapublicauctionofthepropertiesoveramaximumperiodof24monthsfromthedateofrezoning.ThepropertieswererevaluedfollowingtheirrezoningbytheTribunaldeTasacionesdelaNaciónatalmostUSD150million,whichwillinformthebiddingatthepublicauctions.

ThelawspecifiesthattheproceedsoftheauctionscanonlybeusedtofinancethePaseodelBajoproject.Item2.5ofLaw5796requiresthatoncetheauctionshavebeenconductedandallproceedshavebeenreceived,theMinistryofUrbanDevelopmentandTransportwillreinvest,ataminimum,theseproceedsintheconstructionoftheproject.

Image courtesy of AUSA

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Four lanes for light vehicles travelling NorthA. MOREAU DE JUSTO HUERGO / MADERO

Pedestrian Bridge

Tunnel for buses and trucks only

Four lanes for light vehicles travelling South

Theprojectwillbefundedbyuser-chargeswiththeCABAgovernment’sHighwayTollCollectionsystem,throughauniquemodelunderwhichAUSAallocates55%ofitstotaltollrevenuetodeveloptheroadsandothermobilityworksunderitsconcession.

PROJECT DESIGN

Thenewhighwaywillconsistof12lanes,fourofwhichareundergroundinanopen“trench”tunnel,freeoftrafficlights,andreservedexclusivelyforheavyvehicles,suchastrucksandlong-distancebuses.Thetunnelwillhavetwolanesrunningineachdirection.HeavyvehicleswillbeabletoenterthetunneldirectlyfromtheBuenosAires-LaPlataHighway(officiallycalledtheAutopistaDoctorRicardoBalbín)intheSouthandcrossthecitywithouttrafficlightstotheRetiroBusTerminalorPortintheNorth.ThehighwaywilluseIntelligentTransportationSystem(ITS)technologytoensurethatthecorrecttypeofvehicleisusingthecorrectlane.

Runningalongsidethetunnel,alongtheexistingAliciaMoreaudeJustoandMadero-HuergoAvenues,willbeeightlanes,fourrunningnorthandfourrunningsouth.Theselaneswillbereservedforlighttransit,suchascarsandshort-distancebuses,withdifferingspeedlimitstocontroltraffic.Twolaneswillhaveamaximumspeedof60km/hourandtwowillhaveamaximumspeedof40km/hour.

ThePaseodelBajowillalsoincludenewpublicspacesandgreenareas,locatedonthesidesofthelightvehiclelanesandabovethe“trench”tunnel.TheParquedelBajowillbedevelopedwithatotalareaof102,000m²opentothepublic,includingwidenedfootpaths,urbanfurniture,cyclepaths,children’splayareas,andexercisefacilities.Therewillbe60,000m²ofnewpublicspaces,ofwhich35,000m²willbegreenareas.

Image courtesy of Buenos Aires Cuidad (www.buenosaires.gob.ar) via La Nacion

FINANCING SOURCES

AMOUNT (USD MILLION)

Debt FinancingDevelopmentBankofLatinAmerica(CAF)Loan

400

Total Debt Financing 400

GrantsCityofBuenosAires(CABA)Government

300

Total Grants 300

Total Financing 700

FINANCING

Theprojectwillbe57%financedbyaloanfromtheDevelopmentBankofLatinAmerica(CAF),signedinagreementwiththeFederalGovernmentofArgentina.TheremainderofthefinanceistocomefromthegovernmentoftheCityofBuenosAires.

TheCAFloanispartofCAF’scommitmenttothedevelopmentofinfrastructureinArgentina,whichincludessovereignfinancingoperationsofuptoUSD2billioninthe2016-2019periodforinfrastructureworksandsocialdevelopment.Itwillhavea15-yeartenorwithafour-yeargraceperiod.

TheCABAgovernmentwillfinancetheprojectthroughthesaleofpublicareas,theproceedsofwhichwillgodirectlytofinancingtheconstructionofthePaseodelBajoproject.AttheendofOctober2017,theCABAgovernmentcollectedapproximatelyUSD80.7millionfromthesaleoftwoplotsofland(Plots4and5)aspartoftheCatalinasNorteIIproject.Thisprojecthasatotalofsevenplotsoflandtobeauctioned,theproceedsofwhichwillallgotowardsthePaseodelBajoproject.InDecember2017,Plot6wasawardedforUSD50.1million,withPlot7alsosoldlaterthatmonthforUSD50million.Morerecently,inApril2018,afifthplotofCatalinasNorteIIwassoldforjustoverUSD25million.Thefinaltwoplotswillbeauctionedlaterthisyear.

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ThecontractforBlockBinvolvestheconstructionofthesemi-coveredtrenchattheSouthendofthePaseodelBajo.Thissectionis1.5kmlongandrunsbetweenHumbertoPrimo,CarlosCalvoandBartoloméMitre.ThecontractforBlockCinvolvestheconstructionofthesemi-coveredtrenchattheNorthendoftheproject.Thissectionis2.5kmlongandstartsfromtheendoftheprevioussectionatBartoloméMitreandextendsuptothebeginningoftheNorthviaduct,passingAvenuedelosInmigrantes.Thetrencheswillhaveadepthof5.1metresandacorridorwidthof25metres.Thewallsofthetunnelwillbemadewithcastwalltechnology.

Tofacilitateconstructionoftheproject,therewillbenumerousroadclosuresduringtheconstructionperiod,implementedbyAUSA.Regularpublictransportrouteswillalsobedivertedtemporarily.

CONSTRUCTION

ThePaseodelBajoprojectisahugechallengefromanengineeringperspective,becauseitcrossesthroughoneofthebusiestandoldestareasofthecity.Itisanticipatedthatthiswillcreatesomechallengesduringtheconstructionphase,includingtherelocationoftwopipelines,theproximityoftherivertoconstruction,andthepresenceofmaingaspipes,sewersandelectricity.

Tofacilitateconstruction,theprojectwasseparatedintothreeconstructioncontracts;BlockA,B,andC.Thesewillbeexecutedsimultaneouslywiththesame28-monthcompletionterm.BlockAworkencompassestheconstructionoftheviaductsectionsatboththeNorthandSouthendofthePaseodelBajo.The700mlongSouthviaductstretchesfromtheintersectionofthe25deMayoandBuenosAires–LaPlataHighwaystothebeginningofthe“cut-and-cover”roadtunnel,betweenHumbertoPrimoandCarlosCalvo.The2.3kmlongNorthviaductpassesalongAvenuedelosInmigrantesuntilitsconnectionwiththeIlliaHighway.

Image courtesy of AUSA

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ARTIST’S IMPRESSION

Image courtesy of AUSA

VIADUCTS VIADUCTSOPEN TRENCH PEDESTRIAN TUNNEL TRENCH

DEEP COVERED TUNNEL

ROAD SURFACE

LEVELRAMPS

AppendixPASEO DEL BAJO ROUTE

ThecorridorwillbeginintheSouthoftheCityatthejunctionofthe25deMayoandtheBuenosAires-LaPlata(RicardoBalbín)Highways.Atthisjunction,theroadwayswillbebuiltasviaducts,whichwilldescendinheightuntiltheyreachCarlosCalvoandHumbertoPrimo,atwhichpointtheroadwillgobelowthesurfaceofthegroundtoformthe“cut-and-cover”tunnel.Thesemi-coveredtrenchattheSouthend(partoftheBlockBconstructioncontract)oftheprojectwillbeconstructedatEstadosUnidosstreet.Atthispoint,therewillalsobefourpedestriancrossings

tofacilitateaccesstoPuertoMadero.BehindtheCasaRosada,thetrenchwillbecomeadeepcoveredtunnel.Thecoveredsectionsofthetrencheswillbetransformedintogreenspaces.AttheAvenueRamosMejía,thetunnelwillbegintoriseagainuntilitemergestotheroad’ssurface.Atthispoint,therewillbeanentranceandexittotheRetiroTerminal.Afterthis,thecorridorwillcontinueonanelevatedviaduct,leadingtothePortandeventuallyconnectingwiththeIlliaHighwayandRetiroTolljunctionintheNorthofthecity.

Image courtesy of Buenos Aires Cuidad (www.buenosaires.gob.ar) via La Nacion

SHOWCASE PROJECT: Paseo del Bajo Road Corridor Project

Office Address Level 23, 68 Pitt St Sydney NSW 2000

Postal Address PO Box R1947, Royal Exchange Sydney NSW 1225 Australia

Tel +61 2 8315 5300 Email contact@gihub.org www.gihub.org

The staff of the Global Infrastructure Hub (GI Hub) have prepared this summary of the Paseo del Bajo Project, and any opinions, findings and recommendations contained herein are not necessarily the views of the GI Hub Board of Directors, or the G20 member countries, or of other countries which are donors of the GI Hub. In this document, the GI Hub is not seeking to provide professional advice and, to the extent permitted by law, the GI Hub disclaims liability to any person or organisation in respect of anything done, or omitted to be done, in reliance upon information contained in this document.

Additional details on the Paseo del Bajo project can be found at:

https://www.ausa.com.ar/novedades/paseodelbajo/

http://www.buenosaires.gob.ar/planeamiento/visionciudad/paseo-del-bajo

ARGENTINA’S INFRASTRUCTURE PLAN

SincePresidentMauricioMacri,formerMayoroftheCityofBuenosAires,tookofficeasArgentinianPresidentinDecember2015,oneofthemainprioritiesofhisadministrationhasbeentoimplementaninfrastructureplantohelpboosteconomiccompetitiveness,withaheavyfocusonenergyandtransportation.In2016,theArgentinianMinistryofTransportannouncedaUSD33billioninfrastructureinvestmentprogramtobecompletedin2019.Theprogramaimstoinvestinfivemaintransportationsegments:thecargorailnetwork,roadways,ports,airports,andurbantransportationinfrastructure.Overall,theinvestmentprogramwillconstitutethelargesttransportationinfrastructureplaninthecountry’shistoryoverafour-yearperiod.

Inlinewiththenationalinvestmentprogram,theCABAgovernmenthasalsoimplementeditsPublicWorksPlanfor2016-2019,whichrequiresinvestmentofapproximatelyUSD1.8billionandwillinvolveprojectsininfrastructure,housing,waterandhealthinitiatives.Theplanincludes838projects,ofwhichthePaseodelBajoprojectisone.