Only one bidder for conexion pacifico 2 PPP

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Only one bidder for conexion pacifico 2 PPP

The Colombian National Infrastructure Agency (ANI) has announced that it has received only one bid for the Pacific Connection highway concession 2.

On 5 June 2013, a total of 19 consortia submitted proposals in the EOIs phase. Ten of them was shortlisted for the project but only one submitted bid.

The P.S.F Concesión La Pintada consortium is the only bidder for the project. The team is formed by: Grupo Odinsa S.A. - 25%, Mincivil S.A - 21.15%, Construcciones el Condor - 21.15%, Termotécnica Coindustrial S.A - 13.50%, Icein S.A.S - 9.20%% and Mota Engil Engenharia e Construcao S.A - 10%.

The project cost is estimated at P910,000 million (US$470 million). The project, which is part of the Autopistas de la Prosperidad package, includes the stretches of Bolombolo-La Pintada (44km) and La Pintada-Primavera (54km). The project also involves the construction of 69 bridges and a 2.5km tunnel in Mulatos.

In April 2014, the Pacific Connection highway concession 1, which is also part of the Autopistas de la Prosperidad package, received only two bids from the ten shortlisted consortia.

Furthermore last month two consortia submitted technical and economic offers for Colombia's US$784 million Girardot-Puerto Salgar highway concession. The result of the tender process is negative given that ten consortia had been shortlisted for the project in July 2013.

Industry sources mentioned different reasons for the low number of bids in the three first PPP projects of the 4G highway concession program. Traffic estimates seem to be high and construction costs may not be updated to the current year in the studies submitted by the Government. Both issues could have endangered the expected profitability for the projects.

Industry sources also mentioned that there are doubts over the overall financing of the program.

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