The Colombian government has signed the contract for the El Estanquillo–Popayán highway project. The project was awarded to the consortium ERG Vías Ciudad Blanca, formed by ERG Compañía de Infraestructura y Desarrollo SAS and MIA Grupo Empresarial SAS. Under the public-private partnership (PPP), the concessionaire will finance, design, build, rehabilitate, operate, and maintain the corridor connecting El Estanquillo and Popayán. 

The infrastructure plan involves investments of about COP 8.82 trillion (US$2.32 billion) and includes the construction of 62 km of dual carriageway, 14 tunnels, 125 bridges, and 26 km of additional second carriageway, along with the rehabilitation of more than 100 km of existing roads. Authorities say the corridor will strengthen logistics and mobility across the departments of Cauca, Nariño, Putumayo, and Valle del Cauca, while also improving connections with Ecuador. 

The project is expected to generate more than 150,000 direct and indirect jobs and benefit nearly one million people in southwestern Colombia. The government also plans to invest over COP 150 billion in social programs and pave 37 km of tertiary roads serving nearby communities. Officials described the initiative as one of the most important highway projects undertaken under the Petro administration. The bidding process began in late 2024, with international investors from several countries expressing interest before the final contract was formalised in May 2026.