The Infrastructure sector will play a key role in the economic recovery

15 April 2020
Infrastructure is the first sector that reopens after Lockdown in Colombia. Its activity will continue under strict health safety conditions

After the economic emergency declaration from Colombian Government, President Duque has decided to allow infrastructure projects’ activity as a new exception of the Decree 457 of March 22nd, 2020. This decision is part of the Government measures to reactivate the Colombian economy.

 Besides to this announcement, recently Colombian Government launched the Fifth Generation of Infrastructure Program 5G. The best policy to revive the economy in response to the COVID-19 outbreak and going ahead with infrastructure projects to create thousands of jobs.

In the first wave of 5G projects, the National Infrastructure Agency – ANI includes 12 initiatives in road network, railway, airport and fluvial infrastructure, the investments will reach an estimated value of USD 5.9 Billion and around 90.000 employments.

PROJECT

INVESTMENT (USD Million)*

Buga – Buenaventura Highway

829

Road Network of Valle del Cauca

393

Ruta del Sol 2 Highway (Pto. Salgar – Barrancabermeja)

663

Ruta del Sol 2 Highway (Barranca – San Roque)

551

Magdalena River (First Stage)

200

Dique Canal

676

La Dorada- Chiriguana Railway (Optimization)

406

ALO Sur

223

North Accesses (Calle 196 Calle 245 7ma)

406

New Cartagena Airport (Bayunca)

1,015

Rafael Nuñez Airport Expansion

186

Cali Airport Expansion

338

Total

5,868

 

 

 

 

 

 

 

 

 

 

 

 

Source: Revista Dinero. *Investment estimations in Feb 2020.

These developments are planned with two fundamental axes: completing the key corridors of foreign trade and connecting the country with multimodality from north to south.

An investment opportunity ahead - The 5G Project of the Valle del Cauca road network: Accesses Cali – Palmira

The project is the first of the Fifth Generation program, with a CAPEX: USD 393.3 Million1. It is an ambitious project that will have a length of 310km, that will connect the city of Buga, in Valle del Cauca Department with Santander de Quilichao, in Cauca Deparment. The project will be carried out in 5 functional units (FU) during a period estimation of five and a half years, including a year of pre-construction and a concession period of 29 years.

Preliminary drafts were published in SECOP (Electronic System of Public Hiring) on April 6th 2020 in order to receive comments and observations by interested parties. VJ-VE-APP-IPB-001-2020. Deadline for Public Tender: August 6 - ANI Auditorium, Bogota.

Infrastructure Sector Moves On: Measures taken by the Government

Colombian Government, through Decree 482 of March 26th, 2020, has dictated measures on the provision of the public transport service and its infrastructure, within the State of Emergency, Economic, Social and Ecological. It creates, during the emergency, the Center of Logistics and Transport, which was assigned to the Ministry of Transport with technical capacity, but without legal status, assets, administrative and financial autonomy.

The Logistics and Transportation Center has the faculty to allow infrastructure works continuity in compliance with the biosafety protocols indicated by the Ministry of Health. Recently, Transport, Work and Health Ministries published a joint memorandum (External Regulatory Circular 0003 April 8th 2020) to give safety and security guidelines for infrastructure companies that continue with their construction plans. Supplying of raw materials are also allowed for transport infrastructure projects.

In the PPP projects, due to the adoption of measures by the National Government that lead to decrease tolls’ collection, extensions may be made in time that, in total, exceed 20% of the value of the initially agreed contract. In the case of private initiative projects, contracts may be extended beyond 20% of the initial term.

The entities granting port concessions may extend the concessions periods provided in the contract, for the time they deem necessary; public and private service ports are authorized to provide services to all cargo operations that have the purpose of guaranteeing the supply of basic goods as well as cross border trade.

Public tenders for PPP projects continue its schedule through SECOP platform with digitalization of all their processes.

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