Colombia to reactivate USD 1bn road concession

04 June 2019 - 12:00 am UTC

ANI is in the final stage of the process to reactivate the 25-year, COP 3.5trn (USD 1bn) Ruta del Sol – Sector 3 project with Yuma, the original concessionaire, according to a 25 May press release.

The SPV Yuma is comprised of five companies: Salini Impregilo (40%), Infracon (29%), Fondo de Capital Privado Ruta del Sol (17%), Impregilo International Infrastructures (8.3%), and Conalvias (6%).

Under the terms of the proposed reactivation, Yuma must, among other requirements, obtain a COP 4bn loan and initiate a payment plan to providers.

Construction has begun on six of the nine sections of the project.

ANI originally signed the contract with Yuma on 4 August 2010. Construction on the project began, but, in 2017, the agency commenced a procedure “to assess Yuma’s alleged serious breaches of the concession contract and whether to terminate the contract.” 

While the contract was never officially suspended, the works were halted in 2017. The previous presidential administration debated whether to retender the works. Under the new presidential administration, the government decided that it was viable to continue the project with the original concessionaire instead of launching a new tender process. ANI will not extend the term of the contract.

The special purpose entity Constructora Ariguani, which is wholly owned by Salini Impregilo and tasked with the construction and maintenance of the project, currently has an outstanding debt of over COP 128bn.

Yuma had previously received a bridge loan of approximately EUR 152m, but the participating banks refused to extend it beyond 15 January 2018. In January and February 2019, EUR 24.2m was repaid to Banco Davivienda and Banco de Occidente, corresponding to Salini Impregilo’s share of the loan, according to the company’s 2018 annual report.

Ruta del Sol III is part of the third generation of road projects and includes improvements and construction of 465 kilometers of roads that are integral to connecting the interior of the country with the ports on the Caribbean coast.

 

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