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Colombia's US$25bn 4G highway plan has most of its financing sources lined up, according to business daily Portafolio.
As the country readies the second wave of highway tenders, banks are showing more interest in project financing, Clemente del Valle, head of the national development financing agency FDN, was quoted as saying.
But risk studies conducted by the FDN and validated by rating agencies have left a clearer picture for banks and financial institutions. "At first there were only two banks offering financing, now we have six domestic and some international banks," Del Valle said.
The FDN has created a special fund to ease financing conditions for infrastructure projects, while the Latin American development bank CAF and the World Bank' IFC have said they would finance specific projects.
According to Portafolio, pension funds will participate through special infrastructure vehicles, while concessionaires will issue 15- and 20-year bonds for 200bn to 500bn pesos, once construction is completed, to lower financial costs.
The 4G plan entails the construction of 8,000km of road, including 1,200km of four-lane highways, bridges and tunnels, with most of the projects being carried out under PPPs.