SMBC joins US$150 million financing for Colombia highway
Project covers construction of 32.2km of new road plus 18km of maintenance of existing road
23 Jun 2021 | Michael Marray

Concesionaria Vial del Pacifico (Covipacifico) has signed a US$150 million loan agreement with Sumitomo Mitsui Banking Corporation (SMBC) and Santander to continue with the construction of a highway in Colombia. The road is being built in the southwest of Antioquia, across the municipalities of Caldas, Amaga, Titiribi and Venecia, and includes the construction of 32.2 kilometres of new road plus 18km of maintenance of the existing road.

Total investment in the project is 2.5 trillion pesos (US$670 million). To date 70% of the construction work has been completed.

"This credit agreement reflects the commitment to the execution of Pacifico 1 and at the same time shows the confidence of international banks in the country and the development of its infrastructure," says Covipacifico manager Mauricio Millan Drews.

The loan was extended to Proyectos y Desarrollos Viales del Pacífico SAS - Prodepacifico, majority shareholder of the concessionaire.

Covipacifico has already delivered the first 5.2km of the road, which includes a double tunnel, two bridges, two viaducts and an interchange at different levels, in a ceremony attended by Colombian President Ivan Duque Marquez.

Pacífico 1 is one of the country's fourth-generation (4G) infrastructure projects, and considered one of the most ambitious and complex.

Colombia is also investing heavily in new metro systems. President Duque recently confirmed that the government will back the development of the second line of the Metro de Bogota. According to local press reports, pre-feasibility activities for the second line were finished in May, and the construction contract is expected to be tendered in 2023. 

The project involves capex of 13 trillion pesos (US$3.6 billion). The line will cover 15.8km, of which 11km will be underground.

The new service will have 11 stations and serve up to 45,000 passengers per hour in each direction. It will also have a connection with the first line.

Work is well advanced on the US$5.2 billion No. 1 line, where a consortium of China Harbour Engineering Company and Xian Rail Transportation Group are the concessionaires, though China is not involved on the financing side.

CRRC Changchun has signed a deal to deliver 30 unmanned trains for the project.

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