Shikun & Binui Ltd., a construction and infrastructure company headquartered in Israel, has announced that a fully owned subsidiary of the company that holds 100% in the concessionaire of the Cundinamarca project in Colombia, has signed an agreement to sell a 50% share in the concessionaire to a fund managed by InfraRed Capital Partners Limited. 

Shikun & Binui was the sole shareholder of the project after last September, Perimetral Oriental de Bogotá, a subsidiary of CI Grodco, sold its 25% stake in the project to the Israeli firm.

The road concession includes a 153 km north-south arterial road in the eastern sector of Bogotá. The PPP contract involves the design, construction, financing, operation, and maintenance of the proposed bypass. The term of the concession is 25 years, with an option to extend up to 29 years. In May 2016, Shikun & Binui signed credit agreements with Inter-American Development Bank (IDB), Bancolombia, CorpBanca and Financiera de Desarrollo Nacional (FDN) for the financial close of the project.

The consummation of the transaction is subject to various conditions precedent, including the approval of the senior lenders. Post-closing, Shikun & Binui SBI, a fully owned subsidiary of the company, will continue to serve as the EPC Contractor for the project.

At closing, subject to the fulfillment of the conditions precedent, the company is expected to receive a payment of approximately US$60 million and to record in its financial statements a profit of approximately US$35-40 million.

InfraRed is also a partner of Shikun & Binui on the SH-288 Toll Lanes project in Huston, Texas and on the Gilboa Pumped Storage Project in Israel.