China Communication Construction Company seeks loans for USD 5bn Colombia metro line

19 November 2019 - 12:00 am UTC

China Communication Construction Company – the Asian nation’s biggest overseas infrastructure builder – today said it will seek bank loans to finance part of the USD 5bn Bogota Metro Project in Colombia.

The loans will be used to finance a minority share of the construction costs, a CCCC spokesperson told Inframation. The company will receive government funds in phases during the construction, she said, adding that the bank loans will fill the gap between the funding required and the government payments.

Colombia awarded the Bogota Metro Project to APCA Transmimetro – 85%-controlled by CCCC unit China Harbour Engineering Corporation and 15% by Xi’An Metro Company – on 16 October. The CCCC board has approved a plan to design, finance, build, operate as well as maintain the Colombian capital’s first metro line, according to a stock exchange disclosure today.

The concession period is 28 years and three months, including a construction and project financing phase lasting seven years and three months. After commercial commissioning, CCCC will benefit from availability payments as well as operation and maintenance fees on a quarterly basis from the government.

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