MegaProject 1019: IIC to back Colombian 4G highway
- Inter-American Investment Corporation (IIC)
- Hidalgo e Hidalgo
- Cass Constructores y Cia
- Carlos Alberto Solarte Solarte
- Banco Davivienda
- Banco Sabadell
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The Inter-American Investment Corporation (IIC) a member of the IDB Group is negotiating with the SPV behind the Santander de Quilichao - Popayán highway PPP to join lenders on the US$513-million financing package for the project.
The IIC is mulling a to contribute a loan of US$100 million for the project development.
As we reported in October, 2016, Domestic and foreign banks Banco Davivienda, Natixis New York Branch and Banco Sabadell SA financed the project.
In May, that year, we informed that the project was awarded 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 SPV signed a 25-year PPP contract with the national infrastructure agency (ANI) to design, finance, build, operate and maintain the road project.
The project involves the development of a new 76 km road that includes, among others, the development about 23 bridges and 21 junctions.
The 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.