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The Ministry of Transport of the government of Colombia and the national development bank Financiera de Desarollo Nacional (FDN) have announced that the Bucaramanga-Barrancabermeja-Yondó road project has reached financial close, having secured financing totalling COP1.68 trillion (US$527.4 million).
This includes COP280.9 billion (US$88.2 million) senior debt and a COP105 billion (US$33.0 million) liquidity line from FDN. Contributions to the financing package were also made by Bancolombia, BBVA and debt funds managed by BlackRock, Credicorp Capital and Sura Asset Management.
The Inter-American Development Bank (IDB) is providing COP260.9 billion (US$81.9 million) to the project - 15.5% of the total debt - via a funding line to FDN. Thus, counting direct and indirect participation, FDN is providing 32.3% of the total project financing.
The Bucaramanga-Barrancabermeja-Yondó road, also known as the Ruta del Cacao, will span a total of 189.04km upon completion. 80.84km of new road is to be constructed and 108.20km of existing road is to be improved and rehabilitated. The project also includes the construction of 16 bridges, two viaducts and two tunnels with a combined length of 5.95km.
The sponsors of the project are RM Holding S.A.S, an infrastructure company owned by Ashmore I Colombia Infrastructure Fund, MC Victorias Tempranas S.A.S, a subsidiary of the Mercantil Colpatria Group, and Cintra Infraestructuras Colombia S.A.S, a subsidiary of Spanish developer Ferrovial. The engineering, procurement and construction (EPC) contractors are Constructora Colpatria S.A and Ferrovial Agromán S.A.
Upon completion, the road will reduce travel time from Barrancabermeja to Bucaramanga from the current two hours and twenty minutes to approximately one hour. It is estimated that the infrastructure will directly benefit ten municipalities and 1.5 million inhabitants.
The project is one of the 40 projects that comprise the 4G programme - the Fourth Generation Toll Road Concession Programme (Cuarta Generación de Concesiones), currently the largest road infrastructure programme in Latin America, spanning 7,000km and requiring around COP47 trillion (US$16.5 billion) investment.
This is the fourteenth project in the programme to reach financial close. Two additional financial closes are expected to be achieved before the end of 2018, with a total of COP24 trillion (US$7.5 billion) committed to the programme.
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.
Read moreThe 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.
Read moreThe 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).
Read moreThe 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 moreColombia'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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