FDN approves loan for Rio Magdalena 2 highway

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FDN approves loan for Rio Magdalena 2 highway

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The consortium Estructura Plural OHL Concesiones formed by OHL Concesiones S.A.S (60%) and OHL Concesiones Chile S.A (40%) is expected to close financing for the Magdalena River highway 2 concession on February 9.

Last week, Financiera de Desarrollo Nacional (FDN), the agency created by the Government of Colombia to support the financing of infrastructure projects in the country, announced the approval of a 200,000 million pesos (US$60.3 million) senior loan for the project. FDN includes Sumitomo Mitsui Banking Corporation, IFC and CAF as minority shareholders.

The total financing package is expected to be 1,500,000 million pesos (US$452.16 million), according to the press released published by the FDN. Local and international banks are understood to be involved in the deal.

This is the first project FDN will finance after the Government's US2 billion sale of its stake in Isagen, the local electricity company.

The road PPP project belongs to the 'Autopistas para la Prosperidad' highway project package. The concession project includes the Remedios - Alto de Dolores - Puerto Berrío stretch. The new highway will have a total length of 144 km.

The construction project involves the development of 2 tunnels with a total length of 310 m and 79 bridges, one of them in Puerto Berrío with 1,480 m length. The project also involves the development of the Puerto Berrio bypass.

The Autopistas para la Prosperidad highway package includes nine concessions. The total investments will exceed 13 trillion pesos (US$7.1 billion) and will feature contributions from the national government through the ANI, the Government of Antioquia and the Government of Medellín.

These road concessions will allow Colombia's Atlantic Coast and Antioquia to connect efficiently with the "Eje Cafetero" and the Cauca valley, decreasing in 7 hours the travel distance between Medellin and Buenaventura port.

FDN has lately approved financing for the following projects part of the 4G road concessions package:

  • Conexión Norte
  • Perimetral Oriente
  • Pacífico 3

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