Debt package in motion for Colombia’s first 5G highway

9 May 2022
Debt package in motion for Colombia’s first 5G highway

The concessionaire for Colombia’s first fifth generation (5G) highway PPP has tapped a multilateral lender for debt financing.

Concesionaria Rutas del Valle – a consortium led by Patria Investments – has approached IDB Invest for a $100 million peso-denominated debt facility for theMalla Vial del Valle del Cauca (Accesos Cali-Palmira)project.

IDB Invest disclosed the request for financing late last week and is expected to submit it for board approval on 28 June.

Rutas del Valle comprises:

  • Rodovias Colombia (affiliate of Patria Investments) – 70%
  • Mercantil Colpatria – 30%

Rutas del Valle wasawarded a 29-year concessionto upgrade and operate and operate a 356km toll road network surrounding the city of Cali in May 2021, beating 7 other bidders. It was the first project from the 5G programme to be awarded.

Works will include:

  • improvement of 291km of existing lanes
  • construction of a new 15.6km road between Cali and Jamundí and 12.6km of new second lanes
  • 2 new bridges
  • 2 new grade-separated intersections

Patria estimates that the project will require capex of around $440 million over 4 years of construction. The investor is expected to commit equity of around $115 million to the project through its Patria’s Infrastructure Fund IV.

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