Driving Greater Road Infrastructure Development
Our bullish view on Colombia's road infrastructure sector has been further confirmed by news that Fiscal Policy Superior Council (Confis) has approved US$13.4bn of financing for nine projects. This is the largest sum ever approved for road infrastructure in the country. With an underdeveloped road system and an increasingly inviting business environment, Colombia offers multiple opportunities for infrastructure investors.
These nine projects are part of the 'Prosperity Highways' programme, which includes 838km of roads, 63km of bridges and 90km of tunnels. It is hoped the infrastructure will connect the fragmented topography of the country.
Eight of these nine highly technical projects will be developed as Private-Public Partnerships (PPP), and will include construction and 25-year concessions for the Conexión Norte (to be awarded at the end of March 2014), Autopista al Río Magdalena 1, Autopista al Río Magdalena 2, Autopista al Mar 1, Autopista al Mar 2, Autopista Conexión Pacífico 1, Autopista Conexión Pacífico 2 y Autopista Conexión Pacífico 3. The remaining project, the Toyo tunnel, is the only one to be fully financed and built by the state. These projects aim to connect the Antioquia department, one of the country's main industrial and agricultural regions, with the country's ports - in order to increase export competitiveness. According to a report from the Treasury, the new roads will reduce the travelling times for trucks to the ports by an average of 40%.
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