The Inter-American Development Bank (IADB) has proposed financing for the East Cundinamarca bypass concession project in Colombia.
The total project investment is estimated at US$700 million. ADB has proposed an A loan of up to U$175 million.
The fundamental purpose of the project is to develop and promote a 153 km north-south arterial road in the eastern sector of Bogotá in order to propose an alternative for mobility in this geographical location. Construction includes the development of 8 bridges and 3 overpasses and is considered to represent a low degree of technical risk.
The public-private partnership contract consists of the design, construction, financing, operation, maintenance (DBFOM) and reversing the East Cundinamarca bypass. The term of the concession contract will be 22 years.
The revenue stream of the project will consist of two key components:
The road represents a new North-South axis with shorter travel times for the departments of Meta, Cundinamarca and Boyacá, as well as metropolitan Bogota, benefiting a total population of approximately 300,000 inhabitants from the areas surrounding the project.
The Colombian road sector has been very active during last weeks. We have reported about several road PPP projects in the country: