US$200 million financial close for Colombian road PPP
This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
Colombia's national development bank, Financiera de Desarrollo Nacional (FDN) has announced that the Transversal del Sigla road PPP project has reached financial close. The project involves the rehabilitation of 137km of road linking Sisga to Aguaclara, running through the departments of Casanare, Boyacá and Cundinamarca.
The project has secured financing amounting to COP575.2 billion (US$200 million). This includes a senior loan of COP172 billion (US$59.7 million) and a liquidity loan of COP50 billion (US$17.4 million) from FDN, and a COP90 billion (US$31.2 million) loan from ICO (Instituto de Crédito Oficial de España), a Spanish state-owned bank attached to the Ministry of Economic Affairs.
The private debt funds Ashmore-CAF and Blackrock have also contributed to the financial close.
This is the first project to benefit from the Colombian peso credit line that FDN launched last year, which allows foreign financial institutions to lend in pesos.
It was awarded to a consortium comprising Grupo Ortiz, KMA Construcciones and Obresca in May 2015. Having secured a significant debt financing package in 2016, the developers began the rehabilitation works, which include reconstruction of the road paving and rehabilitation of 15 tunnels and 53 bridges. The highway is expected to be operational in September 2019.
The road will significantly reduce travel time from central Colombia to the eastern plains. The existing route, the Transversal de Cusiana, takes 5.3 hours to travel, whereas the Transversal del Sigla will take 4.8 hours once fully rehabilitated.
The project belongs to the 4G programme - the Fourth Generation Toll Road Concession Programme (Cuarta Generación de Concesiones), currently the largest road infrastructure programme in Latin America. It consists of 40 projects that span 7,000km and require an investment of around COP47 trillion (US$16.5 billion) to construct.
The Transversal del Sigla is the thirteenth 4G project to reach financial close.
Country news
-
-
April 19, 2018
Cancelled river PPP project in Colombia back in development
The Ministry of Finance of the Government of Colombia has approved the new public-private partnership contract for the Magdalena River project, which was originally awarded in 2014 and cancelled last year.
Read more -
April 12, 2018
US$470 million 4G road project in Colombia reaches financial close
APP GICA S.A. has obtained the financing necessary to achieve financial close of the Girardot-Ibagué-Cajamarca (GICA) road PPP project. APP GICA was created by Constructora Colpatria, Mincivil, Termotécnica Coindustrial, Latinco and HB Estructuras Metálicas after they were awarded the concession contract in 2015.
Read more -
April 10, 2018
RFEOI launched for multi-billion metro PPP in Bogotá
The state-owned Bogotá Metro Company (EMB - Empresa Metro de Bogotá) and Financiera de Desarrollo Nacional (FDN), Colombia's development finance institution, have issued a Request for Expressions of Interest to parties interested in participating in the tender process to select a suitable partner to take responsibility for the preliminary studies, design, financing, construction, procurement, testing, commissioning, operation and maintenance of the first section of Line 1 of the Bogotá Metro.
Read more -
February 12, 2018
InfraRed to acquire 50% stake in Colombian road concession
InfraRed has signed a purchase and sale agreement to secure a 50% interest in the Ruta Al Mar concession, a 34-year concession for the design, construction, finance, operations and maintenance of a toll road project in Colombia.
Read more -
February 06, 2018
US$560 million financial close for Colombian road PPP
The Bogotá-Villavicencio road concession has reached financial close with a financing package of COP1.6 trillion (US$562.86 million). The project involves the operation and maintenance of the existing 85.6km road linking Bogotá, the capital city of Colombia, to Villavicencio, to the south-east, in the department of Meta, and the construction of a 22.6km dual carriageway.
Read more
