MegaProject 1306: IDB approves US$600 million credit line for Bogotá Metro
- Inter-American Development Bank (IDB)
- Financiera de Desarrollo Nacional (FDN)
- World Bank
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The 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.
As reported on this platform, Bogotá Metro Company (EMB) and Colombia's national development bank FDN issued a Request for Expressions of Interest (RFEOI) for the preliminary studies, design, financing, construction, procurement, testing, commissioning, operation and maintenance of the first section of the inaugural line in April. 64 EOIs were submitted.
In June, EMB announced that it was negotiating financing for the project with IDB and the World Bank, and would not proceed with the tender until loans were secured. Last week, the Mayor of Bogotá announced that the next procurement stage will open on 6 August, foreshadowing this announcement from the IDB.
The US$70 million loan has a 20-year term, with a 5.5-year disbursement period, a 5.5-year grace period and a LIBOR-based interest rate.
FND and EMB aim to award the PPP contract for the line between May and June 2019. The selected private partner will construct a 23.96km-long metro system on an elevated platform. Running along Caracas Avenue between 1 and 72 streets, the line will cover the area with the biggest demand for transportation in the city.
It is scheduled to begin operations in 2024, serving a projected 990,000 passengers a day.
The total investment for the project is US$4.35 billion. Of this, US$2.5 billion corresponds to the civil works and US$1.16 billion to the rolling stock and rail systems, which will be the responsibility of the concessionaire. The remaining amount represents public sector spending on land purchases, social management, advance transfer of public service networks, project management and supervision.