IDB to provide financing for Colombia's 4G highways
Colombia's infrastructure-focused development institution FDN and the Inter-American Development Bank (IDB) signed two loan agreements worth a combined 600bn pesos (US$212mn) that will benefit infrastructure efforts in the country, especially the 4G highways program.
The IDB is now becoming a strong player in Colombia in terms of infrastructure financing, finance minister Mauricio Cárdenas (pictured right) said in a press release.
A financing line created last year by FDN will allow IDB to provide the financing in local currency and the finance ministry said IDB is now analyzing several projects.
President Juan Manuel Santos has called on foreign lenders to increase their financing participation in the 4G program, saying local banks are "scared" by the magnitude of the program.
Local bank executives have defended their cautious stance towards the 4G projects, citing risks related to the massive Odebrecht bribes scandal.
CALLS TO INCREASE REGIONAL INFRA SPENDING
IDB head Luis Moreno made a call for increased infrastructure spending in the region, saying current levels are way too low.
"In the next 20 to 30 years, the region should invest around 5% of its GDP each year, nearly double the current levels," said Moreno at the closing of IDB's annual meeting in Mendoza, Argentina.
One of the reasons for the "subpar" economic growth of Latin America and the Caribbean is low investment in key sectors such as infrastructure, both in terms of investment volume and efficiency, said Moreno.
At the meeting, IDB signed several loans to finance infrastructure projects in Argentina, as well as signing off on the creation of a US$500mn program to support the country's ambitious PPP plan, worth US$30bn.
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News in: Infrastructure (Colombia)
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