Credit downgrade won't derail Colombia’s agenda, says infra chamber

Colombia’s infrastructure chamber (CCI) does not believe that Standard and Poor’s credit downgrade of Colombia to below investment grade will negatively impact the country’s infrastructure-focused recovery plan, including the 4G and 5G concession programs.

"We think that yesterday’s news won’t affect the decision taken by the government in any way,” CCI president Juan Martín Caicedo told BNamericas during a webinar on investments in the country’s Caribbean region when asked about the possible effects of the downgrade on current and future infrastructure projects.

With respect to the 4G highways, which are currently under construction, Caicedo said, “this is a program that’s already consolidated,” while in the case of the 5G infrastructure plan he highlighted the recent award of the first concession, the Cali Access-Palmira section of the Valle del Cauca road network, and underlined the fact that the PPP received eight bids.

S&P downgraded Colombia’s sovereign credit rating to ‘BB+’ from ‘BBB-‘, saying it believes the Andean country's fiscal adjustment will be more protracted and gradual than previously expected.

This followed a series of violent protests around the country against a tax reform bill that was ultimately withdrawn.

In this regard, Caicedo said that adjustments are needed in the economy, but that he expect that this will not affect the government’s decision to focus its recovery efforts on infrastructure investments.

“The government is aware that, despite the difficulties we’re going through, that the pandemic has turned out into an opportunity to understand that this sector had to be, has to be and will remain the spearhead of the economic reactivation,” he said.