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Colombia's financial development institution FDN approved a 300bn-peso (US$98mn) loan to finance infrastructure projects in the port city of Barranquilla.
The FDN underlined that Barranquilla is the fourth biggest city in Colombia, yet 39.5% of its population lives below the poverty line, according to a press release.
For this reason, the loan will be used for the Barranquilla road network program, which includes maintenance and improvements to road infrastructure, new signage to improve efficiency and increase safety, reconstruction of sidewalks, construction of bicycle lanes and the urban renewal of 29 stretches of road entailing 35.4km in total.
CREDIT LINE FOR CSS CONSTRUCTORES GUARANTEE
The FDN also greenlighted a 75bn-peso credit line for the issue of a bank guarantee to back the contractual equity of construction firm CSS Constructores, one of the members of the consortium in charge of the Neiva-Girardot highway.
"The guarantee that the concessionaire must accredit equates to 32% of the total equity backing the project. Therefore, the loan approved by the FDN equates to 23% of the total equity that must be accredited by the concessionaire," the FDN statement reads.
The Neiva-Girardot highway is part of the 4G highways program. The initiative entails rehabilitating 197km of road and widening another 76km. This will help connect capital Bogotá with the southern cities of Pasto, Mocoa, Florencia and Tumaco.