John Laing Group has announced that it has entered into an agreement for its first investment in Latin America. John Laing has agreed to acquire 30% of the Ruta del Cacao road project in Colombia for approximately GBP 62 million (US$ 75.4 billion). Partners in the project are Cintra/Ferrovial, Colpatria and Ashmore.

The project involves the development of 236km of road, providing a valuable connection between the cities of Bucaramanga, Barrancabermeja and Yondó in the Santander Department of North-Eastern Colombia. The acquisition is expected to complete over the coming weeks, subject to customary consents.

Over its 25-year term, with an option to extend for a further four, this project requires design, build, finance, operation and maintenance, including the construction of new roads, tunnels, viaducts, bridges and toll stations, as well as upgrading existing road tranches. The construction phase is expected to be completed by 2021.

Ruta del Cacao is part of the Colombian government's Fourth Generation road-building programme to create a national road network through Public-Private Partnership (PPP). Users of this road will benefit from travel time reductions and significant road safety improvements. We expect the project will have a positive impact on the Santander region and the local communities it serves.