From Uruguay: USD $1 Billion Railway Tender & USD $4 Billion Pulp Mill Construction by UPM

Source: Juan Federico Fischer, Andersen Tax & Legal in Uruguay, a member firm of Andersen Global

Uruguay’s government launched a USD $1 billion tender for the financing, design, construction and operation of a 273 km-long (170 miles) railway between the Port of Montevideo and the city of Paso de los Toros, where Finland's UPM is set to build a USD $4 billion pulp mill. 

The operator will be awarded a 22-year contract, which shall be undertaken under a 3P (Public Private Participation) model. The public tender will be open to national and international companies and the bidders will establish the financing conditions. The deadline to submit bids is April 9, 2018. 

In connection with this infrastructure project, Uruguay’s government has agreed with Finland’s UPM on the conditions for the installation of the company’s second pulp mill in the country (a USD $4 billion investment). This creates opportunities on three sides:

1. Rail and infrastructure projects, as mentioned above. 
2. UPM itself will be contracting with global and regional companies across a broad range of activities: construction, engineering, environmental, energy, to name a few.
3. Uruguay’s forestry sector will see a new boom (Uruguay is one of the leading exporters of short-fibre pulp, produced from eucalyptus). For a description of Uruguay’s forestry sector, see: www.uruguaytimber.com.