A contract signes for an estimated at €1.3 billion (COP 4.2 billions) will enable a new toll road concession between Bogotá and Girardot, Colombia’s busiest road : 141 km of highway including the construction of a 65 km 3rd lane
On August 12th 2016, Colombia’s National Infrastructure Agency (ANI) awarded the project 3rd Lane Bogota-Girardot: a public-private partnership (PPP) contract with a term of 30 years for the addition of 65km of 3rd lane and the operation of 141 km of the highway between Bogotá and Girardot, in Cundinamarca and Tolima Departments in Colombia.
Following the announcement, talks occurred between the awardee consortium, VINCI’s subsidiary VINCI Highways. After obtaining the approval of the ANI the final consortium will be formed by VINCI Highways (50%), Constructora Conconcreto (25%) and Industrial Conconcreto (25%).
The total amount of the contract is estimated at €1.3 billion (COP 4.2 billions). The Bogotá-Girardot 3rd lane Toll Road is one of Colombia’ busiest, with 15.3 million vehicles in 2015. The road itself exists for more than 50 years and is operated as a concession since 2005. More than 37% of its revenues come from heavy traffic (it connects Bogotá with the main artery for Pacific ports).
The project involves the design, financing, construction, operation and maintenance of the 141 km of highway, including the addition of 65km of third lanes and the construction of 2km of 4 bidirectional tunnels. The project as of today includes 2 major intersections, a 4.2 km tunnel, 17 bridges, 34 pedestrian bridges, 4 viaducts and 2 operational centers. The project is a self-sustained PPP based on toll revenues (it has already 2 toll stations installed since 2005).
The construction works are estimated to last 5 years and will be carried out by a joint-venture consisting of VINCI Construction Grands Projets / VINCI Construction Terrassement (50%) and Conconcreto (50%). The whole infrastructure will be operated and maintained by the concessionaire.
In July 2015, VINCI has announced a strategic partnership with Constructora Conconcreto, a leading Colombian construction and real estate development company. The partnership involves VINCI’s acquisition of a 20% stake in Constructora Conconcreto via a reserved capital increase.
VINCI’s ambition is to put down long-term roots in Colombia, one of the most dynamic countries in South America. For about a decade, the country has regularly recorded annual GDP growth in excess of 4%. The construction sector is particularly promising, with volume expected to increase by 5% annually in coming years.
This new operation follows the recent acquisition of the LAMSAC highway concession company in Peru and is a further demonstration of VINCI’s dynamic expansion in Latin America.