LIMA, Peru--(BUSINESS WIRE)--Graña y Montero Group (NYSE: GRAM) (BVL: GRAMONC1) indicated through a Relevant Information Communication that, today, Sempra informed its decision not to proceed with the purchase of shares of Odebrecht Group in the Southern Gas Pipeline Project (GSP).
As a result, the current partners of GSP, Enagás Internacional and Graña y Montero, together with the companies of Techint Group - that accompanied SEMPRA in the purchase process - are working on alternatives that allow the project to be carried out in the short-term.
It was indicated that if the project could not be made feasible, and as a consequence, the Government decides to terminate the Concession Contract, such contract provides a termination payment mechanism which, among others, would be destined to the recovery of the amount invested by the Graña y Montero Group in the Project.
In September 2015, Graña y Montero agreed to acquire 20% of the share capital of the Southern Gas Pipeline Concessionaire, with an investment of US$ 215 million, which reflected a clear sign of confidence in the future as well as a commitment to the country’s energy development.
“We continue to believe that the Southern Gas Pipeline, is a vital project for Peru and of which we will feel very proud when it is completed, as we will contribute with our work to the development and growth of Southern Peru,” indicated Mario Alvarado Pflucker, CEO of Graña y Montero Group.
About Graña y Montero S.A.A.
Founded in 1933, Graña y Montero is the only Peruvian engineering and construction company listed on the Lima Stock Exchange since 1997 and in the NYSE since 2013. The Company has participated in the development of major engineering and construction projects in Peru, including large-scale, complex projects in the energy, mining, construction and real estate sectors.
It currently has subsidiaries in Chile and Colombia, and has been executing major projects in Panama, Bolivia, Jamaica and Ecuador. By the end of 2015, the Group’s international revenues amounted to approximately US$ 600 million.
With 83 years of operations, the Company has leveraged its engineering and construction expertise into complementary lines of business, such as the development, ownership, operation and maintenance of infrastructure assets, real estate developments, and the provision of technical services. The Company has significant investments in infrastructure concessions, such as three toll roads and Line 1 of the Lima Metro.