Financial close for three road PPP projects in Colombia

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Financial close for three road PPP projects in Colombia

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

Three road PPP projects in Colombia, Girardot-Puerto Salgar,  Cartagena - Barranquilla and Pacific Connection highway concession 3, have recently achieved financial close.

According to Luis Fernando Andrade, President of Colombia's National Infrastructure Agency (ANI), Goldman Sachs is involved in the US$1.2 billion financing of the projects. Structure Banca was the financial advisor in the deal.

The three projects were awarded between June and July 2014 to a consortium composed of Colombia's Mario Alberto Huertas Cotes and Costa Rica's Constructora Meco.

Girardot-Puerto Salgar highway concession, which was the first to receive bids under Colombia's fourth generation (4G) concession program, includes the design, rehabilitation, duplication, financing, operation and maintenance of the Honda - Puerto Salgar - Girardot corridor.

The project will have a total length of 194 km along the areas of Tolima, Caldas and Cundinamarca in Colombia. It includes 22 km of new road construction in dual carriageway (including the new bridge between Girardot and Flanders), rehabilitation of 33 km of roads, upgrading of 135 km road and 4 km belong to the new bridge between La Dorada and Puerto Salgar.

The total project investment is estimated at US$556.7 million.

Cartagena - Barranquilla corridor concession involves the design, construction, financing, operation and improvement the new road. The term of the concession contract will be 26 years.

The project is divided in two sections. The first section is located in the route 90 A (Cartagena - Barranquilla). Between the departments of Bolívar and Atlántico, the highway will have a length of around 110 km. While the second section includes the construction of a dual carriageway with a length of about 37 km, between the municipalities of Malambo and Puerto Colombia.

The total project investment is estimated at US$844 million.

Pacific Connection highway concession 3 is part of the 'Autopistas de la Prosperidad' package. The package is formed by two other highway PPP projects the Pacific Connection highway concession 1 and the Pacific Connection highway concession 2.

The road concessions includes the following strteches: La Virginia - Asia,  Tesalia bypass, Tres Puertas - Irra, La Manuela - Tres Puertas, Irra - La Felisa and La Felisa - La Pintada. The project involves the  development of 231 km of roads, with 26 bridges and 6 tunnels.

The total project investment is estimated at US$1.29 billion.

During last month we have reported on other 4 roads PPP projects in the country:

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