UPDATED: Late bid could save Colombian highway concession from cancellation

06 May 2019 - 12:00 am UTC

A Colombian consortium has presented a proposal to take over the Santana–Mocoa–Neiva highway concession, according to a press conference last week.

UPDATED: This article has been updated to include clarification from Odinsa that it is not formally part of the takeover consortium. 

A Colombian consortium has presented a proposal to take over the Santana–Mocoa–Neiva highway concession, according to a press conference last week.

The Vice-Minister of Infrastructure, Manuel Gutiérrez, stated that the government will review the proposal from local company Grupo Ethuss over the next month and that the work would begin once it approves the offer.

Gutiérrez mentioned that fellow Colombian company Grupo Odinsa is also interested in participating in the takeover of the contract. However, the company denied to Inframation that it is part of the consortium.  

Gutiérrez also confirmed that the contract with the new consortium would be under the terms of the original contract, but with an additional 1,080 days to complete the work.

In June 2015, procurement agency ANI awarded the original COP 2.97trn (USD 154m), 25-year concession contract to the Aliadas para el Progreso consortium, comprising Carlos Alberto Solarte Solarte (62.22%), CASS Constructores (30.78%) and Latinoamericana de Construcciones (Latinco) (7%).

The Solarte-led consortium was unable to secure financing for the project after being accused of corruption in the award of the prior Ruta del Sol Sección II highway contract, where it worked with Brazilian developer Odebrecht.

The concession is currently in an expiration process with the national infrastructure agency ANI, which was due to end in July, before which time interested parties could still come forward to provide a financial solution to the problem.

As of November 2018, the Aliadas para el Progreso SPV was negotiating new deadlines with ANI to enable French developer Eiffage and global infrastructure fund Meridiam to make a bid for the project.

The highway contract calls for a concessionaire to design, finance, build, maintain and operate the 447km highway, which is part of the second wave of the Colombian 4G program.

Grupo Ethuss did not return requests for comment.

The Vice-Minister of Infrastructure, Manuel Gutiérrez, stated that the government will review the proposal from local company Grupo Ethuss over the next month and that the work would begin once it approves the offer.

Gutiérrez mentioned that fellow Colombian company Grupo Odinsa is also interested in participating in the takeover of the contract. However, the company denied to Inframation that it is part of the consortium.  

Gutiérrez also confirmed that the contract with the new consortium would be under the terms of the original contract, but with an additional 1,080 days to complete the work.

In June 2015, procurement agency ANI awarded the original COP 2.97trn (USD 154m), 25-year concession contract to the Aliadas para el Progreso consortium, comprising Carlos Alberto Solarte Solarte (62.22%), CASS Constructores (30.78%) and Latinoamericana de Construcciones (Latinco) (7%).

The Solarte-led consortium was unable to secure financing for the project after being accused of corruption in the award of the prior Ruta del Sol Sección II highway contract, where it worked with Brazilian developer Odebrecht.

The concession is currently in an expiration process with the national infrastructure agency ANI, which was due to end in July, before which time interested parties could still come forward to provide a financial solution to the problem.

As of November 2018, the Aliadas para el Progreso SPV was negotiating new deadlines with ANI to enable French developer Eiffage and global infrastructure fund Meridiam to make a bid for the project.

The highway contract calls for a concessionaire to design, finance, build, maintain and operate the 447km highway, which is part of the second wave of the Colombian 4G program.

Grupo Ethuss did not return requests for comment.

 

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