Colombia cancels Sacyr’s road PPP contract

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Colombia cancels Sacyr’s road PPP contract

The Colombian National Infrastructure Agency (ANI) has announced it has canceled the concession contract for the Puerta de Hierro - Carreto - Palmar de Varela & Carreto - Cruz del Viso Highway PPP project.

As we reported in May 2015, ANI awarded the project to a Sacyr Concesiones-led team.

Sacyr has stated that after the signing of the contract, uncertainty arises and the construction was impossible due to technical causes. The Spanish company is going to sue the country and because of that, it would not bid in future Colombian tender processes.

The team beat out competition from three other shortlisted consortia:

  • Autopistas del Norte S.P.V: KMA Construcciones S.A.; Ortiz Construcciones y Proyectos S.A.; Equipo Universal S.A.; Valores y Contratos S.A.
  • Infraestructura Vial Para Colombia: CSS Constructores S.A.; Controladora de Operaciones de Infraestructura S.A de C.V.; ALCA Ingenieros S.A.S; Estyma Estudios y Manejos S.A.
  • Estructura Plural Hidalgo e Hidalgo Colombia SAS Construcción y Administración SA.: Hidalgo e Hidalgo Sucursal Colombia S.A.; Hidalgo e Hidalgo Colombia S.A.S.; Construcción y Administración S.A.

The project involved the upgrade of a 202 km road with a concession period of 25 years. The project comprised, among others, the road upgrade, route improvement, Carmen de Bolivar bypass and junction Route del Sol Sector 3.

The total project investment was estimated at US$275 million.

The project was part of the second wave of 4G highway projects, which includes a total of 9 concessions. This second wave includes a total investment of about P11,800 billion (US$4.64 billion). 4G involves the construction of about 8,000km of roads, including 1,200km of four-lane highways, with the majority of projects to be carried out as PPPs.

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