Mexico City, July 31, 2020.- In relation to the Concession Title for the construction, exploitation, operation, conservation and maintenance of the Eastern Highway System of the State of Mexico, dated February 25, 2003 (the “Concession Title”), granted by the Ministry of Communications of the State of Mexico (the “Ministry”) in favor of Concesionaria Mexiquense, S.A. de C.V. (“Conmex” or the “Concessionaire”), a subsidiary of Aleatica, S.A.B. de C.V. (“Aleatica” or the “Company”), Aleatica informs the market that, on this date, Conmex and the Ministry, with the participation of the Sistema de Autopistas, Aeropuertos, Servicios Conexos y Auxiliares del Estado de México (“SAASCAEM”) entered into the Seventh Amendment to the Concession Title (the “Seventh Amendment”).
The Seventh Amendment modernizes the Concession Title, and establishes new standards in terms of safety, quality of service for users and sustainability, based on the current operating conditions and the level of maturity of the project.
In line with the transparency policies implemented by the Company in collaboration with the authorities of the State of Mexico, the original document of the Seventh Amendment will be published within the following days, in the website: www.transparencia-aleatica.com.mx. With this action, the Company is significantly surpassing the applicable legal transparency requirements and market standards.
Specifically, the main modifications to the Concession Title agreed under the Seventh Amendment include the following:
- Investment recognition and tariff regime: The Ministry, SAASCAEM and Conmex, with the assistance of external accounting advisors, determined the amount of the total investment pending to be recovered by the Concessionaire as of July 1st, 2020. The new financial terms allow the investment to be recovered in the terms set forth in the Concession Title.
The Ministry and Conmex agreed on an update to the tariff regime provided in the Concession Title. Under the new tariff regime, the parties agreed to reduce the increases in real terms to the tariffs on light vehicles in full support of the household economy of the users of the Concession. In addition, a new balance between tariffs of light and heavy vehicles was agreed upon, providing for increases in respect of heavy vehicles to account for the increased maintenance activities to comply with the new performance standards and the additional investments required in the toll-road.
- Performance standards and improvement of infrastructure: New performance standards were agreed upon to provide greater safety and improved customer service, greater care of the environment and improved conditions for the communities that the Concessionaire serves. These criteria represent updated physical and maintenance conditions for the operation of the toll-road and the conditions for the provision of associated and platform services, bringing the conditions in line with international best practices and standards and providing objective criteria for its evaluation.
Likewise, as part of the improvement of the toll-road, additional investments and approved construction works by the Concessionaire were agreed for the benefit of the users and communities of the Concession. The execution of such works is subject to obtaining any necessary authorizations and third-party consents.
The modifications included in the Seventh Amendment will allow Conmex to continue the operation of the project in modernized conditions, to maintain the service to its long-term financing structure and to carry out all necessary actions to meet the increasing demand of cargo and passenger transportation in the toll-road, which will allow the Company to consider the potential enhancement of roads/airport connections.
In line with Aleatica’s commitment to the communities surrounding the toll-road, Aleatica’s multi-year sustainability program will be reinforced.
Back to Relevant Events