Guatemala promotes ambitious metropolitan road project

circulación vial

Guatemala is moving toward a comprehensive reconfiguration of its metropolitan road system with a new structural project known as “Ring 1” and “Ring 2,” developed by the Korea International Cooperation Agency (KOICA) at the request of the National Agency for the Development of Economic Infrastructure Partnerships (ANADIE). The feasibility study was presented on September 26, 2025, marking an important milestone in the planning of major urban and economic infrastructure works.

 

Main components of the project

  • Ring 1: A 21.8 km inner ring road that will integrate existing main arteries such as the Anillo Periférico, Avenida Las Américas, and Avenida La Reforma, with 8.9 km of new construction.
    This section will include four bridges (totaling 1.6 km), a 4 km tunnel, and two overpasses totaling 410 meters.
  • Radial Corridors:
    • Radial 1: From Mixco to Zone 11 of Guatemala City (8.1 km), including 17 bridges (2.8 km) and a 1.5 km urban tunnel.
    • Radial 2: From Zone 3 toward Santa Catarina Pinula (10 km), with 10 bridges (3.6 km).
    • Radial 3: Connecting Zone 21 with Villa Nueva (6.3 km), featuring an 80-meter bridge over a river and a 1.1 km tunnel.
  • Ring 2: An outer ring road of 38.2 km surrounding the capital’s outskirts, including 19 bridges (4.75 km), two tunnels (3.08 km), and one overpass of 190 meters.

 

Investment opportunities 

The development of Rings 1 and 2 represents an attractive portfolio for both public and private investment. The works could be executed through public tenders, public-private partnerships (PPPs), public works contracts, or concession schemes, particularly in areas such as road infrastructure, tunnel and bridge construction, traffic management technology, and the deployment of electric transportation fleets.

These contractual frameworks will create opportunities for participation by investors, contractors, and international operators, positioning the project as a driver of urban and economic development with regional scope.

 

Economic outlook and financing

The project is expected to have a highly positive economic and social impact by generating direct and indirect employment, reducing logistical costs, improving urban productivity, and promoting orderly metropolitan expansion.

Given the magnitude of the works, mixed financing mechanisms, both international and local, will be required, opening opportunities for development banks, institutional investors, and infrastructure funds interested in participating in the project’s structuring and execution.

 

Regulatory and legal aspects

The project’s planning and implementation will affect contractual structures, bidding processes, and management models, generating new opportunities and challenges for the parties involved.

These initiatives will require specialized legal advisory services in areas such as public-private partnerships, concessions, public procurement, environmental law, and urban planning.

 

Business preparation

Companies interested in participating in Rings 1 and 2 can begin preparing now by:

  • Conducting technical and financial feasibility studies.
  • Identifying local or international strategic partners,
  • Strengthening their compliance, social, and environmental policies.

Early preparation will allow potential participants to position themselves strategically for upcoming bidding, contracting, and implementation processes as the project advances.

Author

Ligia López De Luna

Ligia López De Luna

Senior Counsel

Guatemala