Colombia changes rules to speed up infra projects

Wednesday, September 17, 2014

Colombia has changed compensation rules when the state purchases or expropriates properties, in a move to speed up and ease the financial cost of infrastructure projects.

In a statement, Colombia's geographical institute (Igac) said the new legal framework would allow compensation not only for expropriations, but also for voluntary property sales, recognizing both lost profits and damages.

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Until now only expropriations were compensated, leading to long legal disputes between the state and landlords and delaying infrastructure projects.

Igac head Juan Nieto said the new rules could reduce transactional costs 30%-40% and speed up processes 80%, according to El Colombiano newspaper.

The new rules are expected to benefit the so-called 4G US$25bn highway program.