Mexico City, Mexico, April 8, 2019 – In relation to the Engineering, Procurement and Construction Contract of the Atizapán – Atlacomulco High Specifications Toll-Road, in the State of Mexico (the “ATAT Toll-Road”), dated October 10, 2016, (the “EPC Contract”), entered into by and between Concesionaria AT-AT, S.A. de C.V. (“ATAT”), a subsidiary of Aleatica, S.A.B. de C.V. (“Aleatica” or the “Company”) (BMV: “ALEATIC”), and Constructora de Proyectos Viales de México, S.A. de C.V. (the “OHL’s Subsidiary”), a subsidiary of Obrascón Huarte Lain, S.A. (“OHL”); Aleatica informs the market that:
- On April 8, 2019, ATAT has formally notified OHL’s Subsidiary of the termination of the EPC Contract, since OHL’s Subsidiary has committed material defaults under the foregoing EPC Contract. This decision comes after documenting the defaults of OHL’s Subsidiary, including their suspension of material construction works;
- ATAT considers that it has complied with the terms of the corresponding Concession Title and with its obligations under the EPC Contract, including with the payments to OHL’s Subsidiary in accordance with the provisions established in this contract;
- ATAT has maintained continued communications with the Ministry of Communications and Transportation in connection with the continued performance of the construction works and the termination of the EPC Contract; and
- ATAT will continue the construction works together with the subcontractors that have worked in the project and with those new contractors interested in participating in the project. The process of appointing new contractor(s) will specifically include local Mexican companies, among others.
In connection with the above, it is important to mention that the termination of the EPC Contract was conducted in accordance with the rights of ATAT under the EPC Contract and with the firm intention to continue complying with its obligations under the corresponding Concession Title.
This action of ATAT is consistent with and confirms Aleatica’s strategy of implementing its projects with responsible contractors that comply with the highest standards of the industry, as well as clearly establishing its independence from OHL.
Finally, ATAT is analyzing its applicable legal remedies in relation to the defaults of OHL’s Subsidiary, including the exercise of the necessary contentious actions before the corresponding arbitration panels and authorities (including judicial).
About Aleatica, S.A.B. de C.V.
Aleatica, S.A.B. de C.V. is positioned as a relevant transport infrastructure operator in the industry within the metropolitan area of Mexico City, both for the number of concessions awarded and the miles of highways under management. Currently, Aleatica, S.A.B. de C.V. builds, manages, operates and maintains 7 toll roads and one airport. The highway and related infrastructure concessions are located in urban areas with high vehicular traffic in Mexico City, Mexico State and the State of Puebla, that are home to 27.22% of the nation’s population and in 2015 generated 29.23% of GDP and accounted for 34.39% of the total number of vehicles in Mexico (12.02 million (Mexico City 4.7 million, State of Mexico 5.9 million, and Puebla 1.4 million)). In the airport sector, Aleatica participates in the integral management of the second largest airport serving the Mexico City metropolitan area. For more information visit our webpage www.aleatica.com.
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