The Popayán - Santander de Quilichao road PPP has reached financial close for COP806,600 (US$280 million) in Colombia.

Domestic and foreign banks Banco Davivienda, Natixis New York Branch and Banco Sabadell SA financed the project.

As we reported in May, Colombia's National Infrastructure Agency, ANI, awarded the road to Estructura Plural Hidalgo e Hidalgo consortium, composed of Hidalgo e Hidalgo Sucursal Colombia, Hidalgo e Hidalgo Colombia SAS, Cass Constructores & Cia SCA and Carlos Alberto Solarte Solarte.

The project involves the development of a new 76 km road that includes, among others, the development about 23 bridges and 21 junctions.

The total project investment is estimated at P1,200 billion (US$470.6 million).

The new road will improve the mobility of the southwestern region as well as the connection with Ecuador. The travel time between Santander de Quilichao and Popayán is expected to be reduced from 2 hour to 1 hours.

The project is part of the second phase of the fourth generation (4G) Program of highway concessions. The second wave of 4G highway projects includes 10 concessions. 4G involves the construction of 8,000km of roads, including 1,200km of four-lane highways, with the majority of projects to be carried out as PPPs.

The president of the National Infrastructure Agency (ANI), Luis Fernando Andrade, said:

"These developments are very significant. We go forward in our efforts to create the best transportation infrastructure that Colombia has never had. With this closure is a further demonstration of confidence by the financial sector. The bank is still with us supporting, promoting and encouraging investment in the country. "