CABEI to finance Fourth Generation of Road Concessions Project in Colombia

Tegucigalpa, July 14, 2016.- The Central American Bank for Economic Integration (CABEI) signed a contract with Concesión Alto Magdalena, S.A.S to formalize its participation for up to US$136.0 million in a syndicated credit for the partial financing of the Honda-Puerto Salgar-Girardot road corridor in Colombia.  

A number of local Colombian financial institutions are also participating in the syndicated loan, which will provide up to US$378.0 million for this important road project.   The CABEI resources will be destined for the execution of the studies, designs, supply, construction, refurbishment and improvement of the 184.64 km Honda-Puerto Salgar-Girardot road stretch, which will be paved with asphalt concrete.  

The road corridor is part of the first projects of the Fourth Generation (4G) Concessions Program; its construction will permit Colombia to accelerate its development process and to become more competitive.  

The project falls under the framework of CABEI’s 2015-2019 Institutional Strategy “Integrating Sustainable Development and Competitiveness,” in the strategic axis of competitiveness and is also line with Colombia’s 2014-2018 National Development Plan.  

“This loan agreement represents an excellent opportunity for CABEI to support Colombia’s 4G scheme of public-private partnerships, and we are certain that the project will contribute to strengthening the country’s competitiveness by improving its road infrastructure and establishing appropriate regional connectivity,” stated CABEI Executive Vice President Attorney Alejandro Rodríguez Zamora.   Attorney Rodriguez also noted that CABEI’s participation in the operation will permit it to consolidate its financial soundness through the geographic diversification of its portfolio. In addition, the operation is a means of reaffirming the Bank’s commitment to supporting its member countries to implement innovative financial mechanisms in favor of regional development.