Latin America: Colombia details private financing role for Bogotá Metro

09 April 2018 - 12:00 am UTC

The USD 4.3bn Metro de Bogotá project will include as much as USD 1.1bn in private financing, Colombian officials said at a roadshow in London.

Altra Capital, Clifford Chance, Macquarie Capital and PwC were among those present at the Monday (9 April) event, which drew construction companies, financial, technical, and legal advisory firms as well as investment funds.

The Government of Bogotá, Empresa Metro de Bogotá (EMB), and national development bank FDN participated in the presentation. KPMG and Structure Banca de Inversión are serving as financial advisors for Metro de Bogotá.  

The project will be tendered as a single concession including the construction of civil works, rolling stock and railway systems, as well as its partial financing, operation and long-term maintenance. The concession would be awarded to a single company or consortium of contractors, manufacturers and operators.

“This reduces the risks of executing the project through several contracts,” a source close to the project said.

The required investment is USD 4.34bn, including USD 1.1bn from the concessionaire and the remainder from payments executed by the grantor during the construction period. “This is one of best advantages of the project [that] we are providing most of the resources,” FDN president Clemente del Valle said during the presentation.

The government has already secured budgetary commitments for 25 years, and the project is fully backed by availability payments, del Valle said. EMB will also make initial investments to acquire land and relocate public utilities, while the concessionaire will be responsible for the remaining investments.

According to the presentation, the project capex summary is as follows:


USD million

Direct Investments Executed by EMB




Public service network transfer




Total Direct Investments EMB




Investments executed by the concessionaire


Civil works


Rolling stock and railway systems


Total Investments Concessionaire







Capex funding will be divided in two with the first part covered by EMB, which is fully backed by the central and local government. This part includes land acquisition, public utilities networks relocation, PMO and works supervision.

The cash payments by EMB represent an estimated 70% of the concessionaire’s capex. The IDB Group, the World Bank and the European Investment Bank (EIB) will support the project with USD 1.7bn. A bond issuance in 2019 in COP for USD 900m is also expected.

The concessionaire’s debt represents 22% of its capex, while its equity represents 8% of its capex, as the table below shows.


Estimated value (USD billion)





CAPEX to be executed by the concessionaire


Cash payments by EMB


CAPEX to be covered by the concessionaire after cash payments


Concessionaire’s debt


Concessionaire’s equity


Source: FDN

Bidding process
Last week, EMB and FDN launched an RFI for the project, setting a 17 May deadline for interested companies to reply.

The qualification process will begin in mid-July and qualified bidders should be named by October, according to the presentation.

The FDN expects to issue the tender documents in November with bids to be presented in February 2019. The winner would sign the 27-year contract at the end of April 2019. 

Project details
Bogotá’s first subway line is expected to carry 135 million passengers in its first year in operation. It will stretch over 24km from Portal Las Américas in the southwestern Bosa neighborhood to Avenida Caracas in the southeast, with 23 trains able to carry up to 1,800 passengers each. Of its 16 stations, ten will be fully connected with the TransMilenio bus rapid transit (BRT) system.