Overview

The Government of Uruguay announced that the Ministry of Transport and Public Works was planning to invest:  $532 million in 2022; $329 million in 2023; and $260 million in 2024. Almost 20 percent of these amounts will be directed to the development and improvement of national transportation infrastructure.  In terms of infrastructure financing, Uruguay became the second Latin American country to become a member of the Asian Infrastructure Investment Bank (AIIB) in April 2020.  Other multilateral development banks such as the IADB, the World Bank and CAF are also active in Uruguay.

For information on other infrastructure projects please contact: CS Uruguay.

Leading Sub-Sector

Ports

The Uruguayan government extended the concession for the operation of the sea container terminal, Cuenca del Plata, in the Montevideo Port until 2080 to Belgian company, Katoen Natie.   Katoen Natie later announced a $460 million investment for the expansion and modernization of the terminal which will increase the area of the terminal, improve IT, security, and infrastructure.  With these improvements, Montevideo is on its way to being the first sustainable port terminal in South America delivering green electricity to all docked ships.  The new infrastructure includes three berths, 17 portico cranes, and cold ironing technologies.

The Argentinian company, PTP Group, announced the construction and operation of an agro-industrial port complex in Punta Arenal, Soriano.  The project will enhance the role of Uruguay as a transshipment point facilitating movement through the Paraná-Paraguay waterway.  This project would represent an investment of $80 million and manage 5,000 tons of breakbulk cargo per year.  Operations are expected to begin in the second half of 2023.

Uruguay’s National Port Administration approved the concession of the Capurro commercial fishing terminal in the Port of Montevideo.  This concession includes 10 hectares of land area where the concessionaire provides commercial fishing logistics, port activities, dredging, ship repairs, transshipment, and warehousing.  The tender for this concession came out in second quarter of 2022 and the award is expected in the second half of the year.

The government of Uruguay is evaluating a private initiative for the development of a passenger port terminal at Mauá dam.  This terminal would replace the current one located at the Port of Montevideo.  The intent is to separate the passenger terminal from cargo activity that also takes place in the port of Montevideo.  The first stage includes plans to build a ferry terminal, to be followed by the construction of a cruise ship terminal in the second phase of this 30-year concession.  The estimated cost of the project is $400 million, and the Government will hold an international tender as part of the process.

Hydroelectric Facilities

In May 2019, Uruguay announced a plan to modernize and renovate the binational Salto Grande Dam, shared between Uruguay and Argentina.  This three-stage project will be developed over the next 30 years.  The first stage, from 2019-2023, is valued at $80 million and received Inter-American Development Bank financing.   In addition to the Salto Grande renovation project, state-owned enterprise UTE launched a modernization project for the Baygorria Dam.  The Baygorria Dam was built in 1960 and will need an estimated investment of $50 million to complete the renovation work. 

Water Treatment

The Government of Uruguay announced a $1 billion investment for the design and development of a nation-wide sanitation project, to be completed over four years.  The project will be financed through: user connection fees; a $164 million contribution from the state-owned water and sanitation company, OSE; and $697 million from the central government.  Included in this project is: the design and construction of 54 new water treatment plants; the improvement of 40 existing water treatment plants; the installation of 3,472 km of sewer infrastructure; and the construction of 246,973 new home connections.

To supply drinking water to Montevideo, the government approved a project presented by a local consortium for a $288 million new water treatment plant to use the Río de la Plata as a water intake source. This project would offer a second source of water to supply Montevideo, Canelones, and San Jose Departments and provide redundancy to the system.  The plan includes a water treatment plant and 80 kilometers of pipeline that will connect the Montevideo system to this second source of water.  The tender for this project is scheduled to be published by the end of 2022.

Potable water resource management is an emerging issue.  In 2013 and again in early 2015 isolated incidents of cyanobacteria-tainted water highlighted the need for urgent government investments in upgrading and monitoring water quality. The widespread appearance of cyanobacteria subsequently negatively affected Uruguay’s 2018-19 tourist season.

Resources

Embassy Contacts: Office.Montevideo@trade.gov; https://www.trade.gov/uruguay

Ministry of Transportation and Public Works (MTOP) – https://www.gub.uy/ministerio-ganaderia-agricultura-pesca/

National Ports Administration (ANP) – https://www.anp.com.uy/

National Railway Administration (AFE) – https://www.afe.com.uy/