The Central American Bank for Economic Integration (CABEI) has signed a contract with Concesión Alto Magdalena, S.A.S, the project company formed by Mario Alberto Huertas C. (75%) and Constructora Meco S.A. (25 %) to formalize its participation for up to US$136.0 million in a syndicated credit loan for the partial financing of the Honda - Puerto Salgar - Girardot corridor PPP in Colombia.

A number of local Colombian financial institutions are also participating in the syndicated loan, which will provide up to US$378.0 million for the road project. The total project investment is estimated at US$556.7 million. ​

As we reported, in mid August 2015, Goldman Sachs was involved in the US$1.2 billion financing of the Girardot-Puerto Salgar project together with other two PPPs, namely Cartagena - Barranquilla and Pacific Connection highway concession 3.  Structure Banca was the financial advisor in the deal.

The project will have a total length of 194 km along the areas of Tolima, Caldas and Cundinamarca in Colombia. It includes 22 km of new road construction in dual carriageway (including the new bridge between Girardot and Flanders), rehabilitation of 33 km of roads, upgrading of 135 km road and 4 km belong to the new bridge between La Dorada and Puerto Salgar. 

The road corridor is part of the first projects of the Fourth Generation (4G) Concessions Program.

CABEI Executive Vice President Attorney Alejandro Rodríguez Zamora, stated:

“This loan agreement represents an excellent opportunity for CABEI to support Colombia’s 4G scheme of public-private partnerships, and we are certain that the project will contribute to strengthening the country’s competitiveness by improving its road infrastructure and establishing appropriate regional connectivity”