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.