Tender opens for US$4.4 billion Bogotá metro PPP

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Tender opens for US$4.4 billion Bogotá metro 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.

As promised by the Mayor of Bogotá less than two weeks ago, the Bogotá Metro Company (EMB) has announced the opening of the tender to design, partially finance, construct, operate and maintain the first line of the city's metro system. The total cost of the PPP project is US$4.4 billion.

The 24km metro line will run on raised track to avoid earthquake risks through the so-called Caracas Corridor located in the south-west of the city, where public transport demand is highest. 23 trains, each able to carry 1,800 passengers, will stop at 15 stations along the route and transport roughly 72,000 passengers per hour.

Following a Request for Expressions of Interest (RFEOI) earlier this year, to which 64 companies and consortia responded, interested private parties are now invited to prequalify to submit proposals for the project until the end of 2018. EMB has not disclosed when it plans to receive proposals, but has scheduled 6 September 2019 as the date of commercial close.

The "partial" financing obligations of the concessionaire are due to a significant portion of the total cost being provided by development finance institutions. As reported on this platform, last week the Inter-American Development Bank (IDB) approved a US$600 million conditional credit line for the project.

Since then, both the World Bank and the European Investment Bank (EIB) have announced that they are also providing financing, with all three DFIs signing loan agreements this week.

The World Bank, through the International Bank for Reconstruction and Development (IBRD) and in parallel with the IDB, is supporting the project with a US$600 million credit line with a US$70 million first instalment, which will fund initial construction works of the viaduct, audits and technical studies for this project.

The EIB, in its first public sector project financing in Colombia, is providing a US$480 million loan, with an initial tranche of US$56 million. These primary loans are planned to cover the development of the project between 2019 and 2020, after which all three banks will disburse further installments to cover the rest of the construction, which is expected to take place until the year 2024.

Of the total investment of US$4.4 billion, US$1.1 billion must be provided by the private partner. This will be recovered during operations stage of the project, which is expected to be 20 years in length.

For more information about the prequalification, see the Business Opportunity.

List of country news

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  • August 02, 2018

    IDB approves US$600 million credit line for Bogotá Metro

    The Inter-American Development Bank (IDB) has approved a US$600 million conditional credit line for the Bogotá Metro. The first loan of the credit line, amounting to US$70 million, will finance the construction of the first line of the planned system, which is to be undertaken by a private partner.

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  • July 30, 2018

    US$900 million road project in Colombia reaches financial close

    The Autopista al Mar 2 (Autopistas de Urabá) project, which involves a 254km highway that will connect Cañasgordas to Necoclí, in Antioquía, a department in north-west Colombia, has reached financial close. The estimated total investment is COP2.57 trillion (US$891 million).

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  • June 11, 2018

    Bogotá Metro Company negotiating US$1.2 billion financing for PPP

    The Bogotá Metro Company (EMB) has announced that it has begun negotiating financing for the Line 1 PPP project with the World Bank and Inter-American Development Bank (IDB). The state-owned company is hoping to secure US$600 million from both financiers for the design, financing, construction, procurement, testing, commissioning, operation and maintenance of the first line of the Bogotá Metro.

    Read more
  • June 04, 2018

    64 EOIs submitted for Bogotá metro

    Colombia's National Development Bank (FDN) has disclosed that around 64 companies have expressed interest in participating in the tender for the development of a metro line in the capital city, Bogotá. The projected value of the PPP contract is COP11.7 trillion (US$4.04 billion).

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  • May 23, 2018

    US$200 million financial close for Colombian road PPP

    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.

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