Banks, builders and Colombian government discuss motorway funding plans

Banks, builders, pension funds and Colombian government officers are discussing plans to finance around 40 new road concessions worth a combined US$23.86 billion (COP 47 trillion). According to market reports, the winners of these concessions will cover around 25% of their final cost. These funds will be paid in the first two years of each project and the winning firms will look to recoup their investment through road tolls. Banks will cover 30% of the cost via 12-18 year loans. The national development ban
January 22, 2014 Read time: 1 min
Banks, builders, pension funds and Colombian government officers are discussing plans to finance around 40 new road concessions worth a combined US$23.86 billion (COP 47 trillion). According to market reports, the winners of these concessions will cover around 25% of their final cost. These funds will be paid in the first two years of each project and the winning firms will look to recoup their investment through road tolls. Banks will cover 30% of the cost via 12-18 year loans. The national development bank FDN will cover 10% via 20-year loans. The International Finance Corporation and the Latin 4900 American Development Bank will cover 5% of the final cost. A total of 19 projects will go under the hammer in 2014.
Road Structures

For more information on companies in this article

Related Content

  • Shortlist set for Norway’s Sotra PPP project
    May 21, 2020
    Sotra Link, Itias and Vis Sotra are vying for the $1.15 billion deal.
    Read More
  • INTERMAT organisers see strong growth in construction
    December 12, 2017
    The organisers of the upcoming INTERMAT trade show for construction and infrastructure see strong growth for the sector. The INTERMAT organisers have unveiled the first Construction Industry Observatory report, which was produced in association with French government agency, Business France. The report provides construction-equipment manufacturers with strategic data on 12 countries in the EMEA zone. These nations have been selected for their planned investment levels in infrastructure, which total €1,600
    Read More
  • Costa Rica highway concession package cancelled
    March 19, 2014
    The Costa Rican Government is paying compensation worth US$28.4 million for the cancellation of a highway concession package. The compensation relates to the San José-San Ramón highway concession and is being paid to the Brazilian construction company OAS, reports Business News Americas. This follows a legal dispute over the project and is some $10 million less than OAS originally claimed in compensation. The 30 year concession package was cancelled last year due to opposition. There were allegations of a c
    Read More
  • The new agile world of the construction equipment industry
    June 22, 2015
    while worldwide for 2015 a crystalball would be helpful, in Europe the sector has already listed specific priorities it wants to tackle, and among these are the upcoming emissions regulations (see separate story), external trade and access to foreign markets, and market surveillance.
    Read More

Highlighted Content