Wednesday, July 8, 2020

Become part of our community


Antioquia’s ‘Pacifico 2’ Highway Project Reaches Financial Close

Published in general news Written by  September 12 2016 font size decrease font size increase font size 0
Rate this item
(2 votes)

Colombian construction giants Odinsa and Construcciones El Condor and Colombia’s infrastructure financial agency (Financiera de Desarrollo Nacional, FDN) jointly announced September 9 that financial close has finally been achieved for the “Pacifico 2” highway projects in Antioquia, part of the massive “fourth generation” (4G) highway projects.

One portion of “Pacifico 2” involves rehabilitation of 54 kilometers of the existing two-lane highway between Primavera (Medellin southern suburbs) and the Cauca River port of La Pintada, where "Pacifico 2" connects with “Pacifico 3” and related highway projects all the way to the Pacific port of Buenaventura.

The other portion of “Pacifico 2” involves building 42.5 kilometers of a divided, four-lane highway including 37 kilometers of new roads, 2.5 kilometers of a new tunnel and 43 bridges, connecting La Pintada and Bolombolo, which then connects to the new “Pacifico 1” highway project between Bolombolo and Medellin.

Project developers estimate that the combined “Pacifico 1” and Pacifico 2” projects will cut at least 25% off the time for freight shipments between Medellin and La Pintada, enabling an average vehicle speed of 80 kilometers per hour.

The “Pacifico 2” project partly required U.S. dollar financing of US$250 million over a 14-year repayment schedule -- involving Brasil-based Itau UniBanco and Peru’s Banco de Credito -- plus another COP$510 billion (US$174 million) involving FDN and local Colombian banks Banco de Bogota and Davivienda, with an 18-year repayment schedule.

To help achieve financial close, Odinsa won FDN guarantees worth COP$252 billion (US$86 million) while Construcciones El Cóndor won FDN guarantees worth COP$150 billion (US$51 million), according to the companies.

Odinsa – which now has a 78.8% share of the Pacifico 2 project – said that it has already obtained all environmental licenses, cut deals to acquire about 75% of the properties adjacent to the project and completed about 70% of the rehabilitation work on the Primavera-La Pintada highway.

All three portions of the project connecting Medellin to Buenaventura– Pacifico 1, 2 and 3 – have now achieved financial close, the company added.

“This is a very relevant milestone in infrastructure finance in Colombia and confirms the strength of the structure of the ‘4G’ concesssions,” Odinsa president Mauricio Ossa added.

Read 5715 times Last modified on Last modified on September 12 2016

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

About Medellin Herald

Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

Contact US

logo def
Medellin Herald: Find news, information, reviews and opinion on business, events, conferences, congresses, education, real estate, investing, retiring and more.
  • COL (4) 386 06 27
  • USA (1) 305 517 76 35
  •  This email address is being protected from spambots. You need JavaScript enabled to view it. 
  • Medellin, Antioquia, Colombia

Medellín Photo Galery

Medellin, contrasting colors and styles by Gabriel Buitrago