Colombia eyes special project finance for the 4G road programme

Colombia's Ministry of Finance is evaluating the use of project finance arrangements to fund the government-backed 4G road development schemes. However, regulations will have to be put in place before such arrangements can be made, according to a report by the Colombian financial newspaper Portafolio. The 4G programme consists of 45 road projects divided into three waves of development under the public-private partnership (PPP) scheme, with another category set up for private initiatives. The budge
January 6, 2017 Read time: 1 min
Colombia's Ministry of Finance is evaluating the use of project finance arrangements to fund the government-backed 4G road development schemes.

However, regulations will have to be put in place before such arrangements can be made, according to a report by the Colombian financial newspaper Portafolio.

The 4G programme consists of 45 road projects divided into three waves of development under the public-private partnership (PPP) scheme, with another category set up for private initiatives.

The budget is around US$18.15 billion that must be invested by 2020. So far, 30 projects have been approved, of which 29 have been awarded by the National Infrastructure Agency (ANI).

Recent analysis by the ministry of the financial closures for the first wave of 4G schemes shows that 47% of funds will come from banks. But challenges exist, such as a limited pool of backers and developers.
Finance & Funding

Related Content

  • Australia promotes sustainable transport initiatives
    July 13, 2012
    Roads Australia is encouraging its members to get behind TravelSmart, the government-led campaign to promote sustainable transport alternatives and reduce our reliance on private cars. A number of TravelSmart initiatives and programmes were highlighted at a recent meeting of RA's Congestion Chapter. It was stressed at the meeting that Roads Australia members could set an example for the community by getting its organisations more involved in the programme.
    Read More
  • Paying for road development
    April 21, 2016
    All around the world, road expansion and maintenance is both necessary and ongoing. In the developed nations the focus is more on road maintenance and widening, while developing nations are concentrating on new road construction. Road networks are crucial to economic development as well as political stability, which often go hand in hand. The massive growth in the US economy from the 1950s onwards was boosted strongly by the development of the country’s interstate network. But in recent times, funding
    Read More
  • Global credit squeeze impacts Australia's road construction
    July 13, 2012
    Roads Australia steps up in policy debate as road construction feels the pinch of the credit squeeze, as Mark Bowmer (RA media director) reports Like all markets around the world, Australia is feeling the effects of the global credit squeeze and its impact on the delivery of major infrastructure projects such as roads. In Sydney, for example, lack of funding (both from government and private sources) is seen as the major stumbling block to the construction of a much-needed eastern extension to Sydney's main
    Read More
  • Brazil planning major highway concession deals
    November 17, 2015
    The Brazilian Government has identified around 10,000km of new highway concessions. This programme will be achieved through a new road maintenance scheme called Programa Nacional de Manutencao de Rodovias (PNMR). The scheme will seek the replacement of existing road maintenance contracts with PPP or other concession arrangements in five years. Brazil has around 9,900km of privatised roads at the moment. Including blocks part of the PIL scheme, this figure stands at 17,000kms. The main aim of the PNMR plan w
    Read More

Highlighted Content