Another 4G highway reaches financial closure

Friday, February 9, 2018

Despite setbacks such as the Odebrecht bribes scandal and a deadly accident on the second section of the Bogotá-Villavicencio highway, projects in Colombia's 4G highways program continue to achieve their financial closures. The latest one is the third section of the Bogotá-Villavicencio highway, which demands an investment of 1.6tn pesos (US$555mn).

"(This) ratifies the market's interest into joining the financing of big projects carried out in Colombia," infrastructure agency ANI said in a press release.

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The latest project entails the operation and maintenance of the 85.6km corridor between Bogotá and Villavicencio, as well as the construction of a 22.6km four-lane road between Villavicencio and Chirajara. Both initiatives are handled by concessionaire Coviandina.

Of the total investment, 50% will come from local bank loans, 25% from a 400bn-peso loan from financial development agency FDN and 25% from private capital fund FCP 4G, comprised of Credicorp Capital and Sura Asset Management, a separate FDN press release said.

Meanwhile, Brazilian bank BTG Pactual certified the financing capacity of two other projects in the 4G program: over 238bn pesos for Puerta de Hierro-Cruz del Vizo and around 490bn pesos for Bucaramanga-Pamplona.